Universal Life Insurance Near Me

What is universal life insurance?

Universal life insurance is a type of permanent life insurance that includes an investment savings element and low premiums. The policy combines death benefits with a savings component that is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder’s circumstances change.

What is universal index life insurance?

Indexed universal life insurance is a type of universal life insurance. This type of insurance allows the owner to allocate cash value amounts to either a fixed account or an equity index account. The major feature of index universal life insurance is that it provides the policy owner with the opportunity to earn interest based on the performance of the equity index.

What are the pros and cons of universal life insurance?

Universal life insurance provides flexibility, tax-deferred cash value growth, and lifelong coverage. However, it's complex, costs can increase over time, and poorly performing insurer's investments can reduce the cash value and death benefit.

What is group universal life insurance?

Group universal life insurance is a type of universal life insurance offered to a group, such as employees of a company. It provides both life insurance coverage and a cash value component. Members of the group typically receive more favorable premium rates due to economies of scale.

How much can I borrow from my universal life insurance policy?

You can generally borrow up to the cash value amount of your universal life insurance policy. However, loans from your policy will decrease the death benefit and cash value, and any unpaid loans plus interest will be deducted from the death benefit if you pass away.

What is guaranteed universal life insurance?

Guaranteed universal life insurance is a type of universal life insurance that provides a guaranteed death benefit as long as the premiums are paid. This policy type is less focused on building cash value and more on providing a permanent death benefit. It combines the affordability of term life insurance with the lifelong coverage of permanent life insurance.

What happens when a universal life insurance policy matures?

When a universal life policy matures, it typically means the insured has reached a specified age (often 95 or 100). The policy will pay out the death benefit to the insured individual, typically in a lump sum. This can have significant tax implications, as life insurance death benefits are typically tax-free, but payouts to living policyholders may not be.

What does universal life insurance cover?

Universal life insurance provides a death benefit that pays out to your beneficiaries when you die. This can be used to cover funeral costs, debts, or provide financial support to your loved ones. Some policies may also include riders for things like chronic illness or long-term care costs.

What’s the difference between universal, term, and whole life insurance?

Universal life insurance is a flexible, permanent life insurance with a cash value component. In contrast, term life only provides coverage for a specific term without cash value growth, while whole life offers guaranteed cash value growth and fixed premiums but lacks flexibility.

How much life insurance do I need?

As a general rule of thumb, many experts recommend a policy worth 10x your current salary. Remember, life insurance can be used to cover expenses such as your mortgage, outstanding debt, college, and so on.