Universal life insurance is a flexible premium
Pros of Universal Life Insurance
Opportunity to Secure Life Time Coverage
Universal Life Insurance offers coverage as long as the policy is maintained through adequate premium payments.
Builds a Cash Value
Universal Life Insurance has a
Offers Flexible Premiums
Premiums are flexible and can be adjusted; to meet the needs of your current situation; as long as the premium paid
Funds Can Be Withdrawn
Some policies allow funds from the cash value to be withdrawn or borrowed against to pay for emergencies or to provide supplemental income. Loans and certain cash accumulation surrenders can be considered a tax-free withdrawal.
Flexible Coverage Level
The death benefit amount can be adjusted to meet your changing coverage needs. This provides you the ability to increase or reduce the death benefit to meet your individual needs.
Cons of Universal Life Insurance
Lifelong Coverage May Not Be Guaranteed
Due to the flexible premium payment structure, the death benefit is not always a guaranteed feature. Be sure to structure your payments and cash accumulation component to help
Premiums Can Increase With Age
There are different types of universal life insurance contracts. The internal cost of insurance increases. Plan you premium payments appropriately, so that you do not experience an increasing premium requirement at older ages.
Repeat Medical Exams
The death benefit can be increased to adapt to your changing needs; you will likely need an additional medical exam to increase the coverage amount.
Universal life insurance premiums are higher than term life insurance premiums. This higher premium is what provides all the flexibility and the ability for the
The insurance company may charge fees for managing the account; interest on