What Is Universal Life Insurance

Everything You Need to Know About Universal Life Insurance!

If you are looking for a life insurance policy that offers flexibility and potential tax advantages, you should consider universal life insurance. This type of policy has been around for many years and has become increasingly popular. 

Here's everything that will answer your questions regarding what is universal life insurance!

What Is Universal Life Insurance?

Universal life insurance is a category of a permanent life insurance policy. It combines the features of both term and whole life policies, so it is sometimes referred to as a "hybrid" policy. 

Like whole life insurance, universal life guarantees a death benefit for the policyholder, regardless of when they die. 

And like term life insurance, universal life allows the policyholder to choose a specific death benefit and premium payment schedule. Universal Life Insurance Canada

How Does Universal Life Insurance Work?

With a universal life policy, you make two types of payments: the premium and the account value. 

You pay the premium each month to keep your policy in effect. 

Over time, the account value builds up as you pay premiums and the insurance company invests your money. 

You can access the account value at any time, but if you do, this will reduce the amount of death benefit that is paid out when you die.

Key Features of Universal Life Insurance

There are a few things to keep in mind when considering purchasing a universal life insurance policy: 

• The premiums will be higher than those for term life insurance, but the coverage will last your entire lifetime. 
• You must pay the premiums on time, or you may lose the policy.
• If you cash in the policy, you will receive the cash value minus any surrender charges.
• If you die after cashing in the policy, your beneficiaries will not receive a death benefit.

Benefits of Universal Life Insurance

The benefits of getting universal life insurance are many. Some of them worth considering are:

• You can borrow against the policy's cash value to pay for unexpected expenses.
• The premiums are flexible, so you can adjust them as your needs change. 
• The policy will accumulate tax-deferred interest. 
• You can use the policy as collateral for a loan.

Conclusion

As you can see, there are a few things to think about when it comes to universal life insurance. 

Firstly, it's essential to get the right coverage for your needs and make sure that you understand how the policy works. 

Secondly, by taking the time to do some research and compare quotes, you can find a plan that fits both your budget and your needs! Universal Life Insurance Quotes

If you are unsure whether or not universal life insurance is right for you, it is best to speak with us. We will tell you all about universal life insurance and how can it benefit you!

Please contact us or visit our website About Us Term Life Insurance Quotes Ontario.

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