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Universal Insurance

Planning ahead for the end of your life can seem morbid, but it also may be essential if you want to provide for your loved ones after you pass away. When you pass away in the near or distant future, your loved ones may feel the emotional trauma associated with your loss. More than that, dependents may feel the financial strain associated with the cessation of your income going forward. Without your income, they may not be able to pay all of their bills. The kids may not be able to go to college. Your spouse may not be able to retire as planned and more. A convenient way to tackle these potential issues head-on is to purchase a universal life insurance policy.

A universal life policy offers numerous benefits that deserve a closer look. First, the policy provides death benefits to your named beneficiaries in the dollar amount that you select. Second, the policy does not have a term expiration date. This means that the coverage will remain in effect as long as you continue to pay the premium. Third, a universal life insurance policy can accrue cash value. With each premium payment that you make, a portion of the premium may be deposited into a cash account that accrues interest. This money can be withdrawn or borrowed against as desired. There is not a loan application process required. You can simply contact the life insurance company to request access to the funds.

Because the primary purpose of this type of coverage for many people relates to death benefits, you may be wondering how your beneficiaries may use the benefits. There are different strategies that you can discuss with your loved ones. For example, benefits initially may be used to pay end-of-life expenses and burial costs. Additional money can be used to pay off outstanding debts, or it can be invested in an income-producing investment vehicle. These are only some of the more common ways to use death benefits. As you choose the amount of coverage that you want to buy, it can be helpful to develop a thoughtful strategy for the use of funds.