What Is Universal Life Insurance

What Is Universal Life Insurance?

Whe many consumers search for life insurane to buy, they discover universal life insurance. They call us with their first question: What Is Universal Life Insurance? Universal Life Insurance is a form of permanent life insurance like whole life insurance. Both types of insurance also can grow a cash value beyond the death benefit, unlike term life insurance which is usually purely for a death benefit. Universal life, unlike whole life, seperates out the cost of insurance from the cash account.

With Universal Life Insurance, premiums are flexible, and any premium paid over the cost of insurance goes into the cash account. This cash account earns interest at a fixed or indexed rate. One common index is the S&P 500. Equity indexed universal life insurance can provide near-market returns, and usually has a guaranteed minimum so the policy owner will never have a negative return (cash value loss).

In this way, universal life insurance can be funded for use a savings or retirement vehicle, beyond its use as a life insurance policy. But because it is a life insurance policy, loans and cash benefits can be withdrawn with favorable tax impacts. Families and businesses use universal life insurance to fund retirement plans, and some people even buy them for young children to help save for college!

Get the cheapest universal life insurance quotes with our safe, fast, and free online quote form. You can fill out the BBB approved form one time, and then connect with local rates and qualified life insurance agents who are eager to compete for your business. The Online Universal Life Insurance Quote Form is free, and without any obligation.

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