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Universal Life Insurance

The 411 on Universal Life Insurance

Intro

Universal Life Insurance is a specialized type of life insurance that is tailored for working adults. Often times an employer will offer partial or full funding of such a policy via a work benefit package for employees. This type of life insurance stands out as it can earn interest on accumulated funds, which can also be made available for withdrawal in times of crisis.

Who Benefits

Good universal life insurance is really beneficial for those who have spouses and certainly those with children. It can pay out significant financial benefits to a family and can also be a virtual life-saver in times of challenge. Upon obtaining retirement age, those who have this insurance will commonly adjust their policies as a consequence of their new status. Note that a universal life policy is generally considered an investment vehicle and is more geared to those still working age as opposed to seniors.

How it Works

A policyholder is required to pay a premium that is determined by the provider in conjunction with the various options taken and choices made by the policyholder. Resources from the policy can become available over time for withdrawal should policyholder be in need. Eventually, the premium amount and the deductions can be modified by how the money is used over time for savings and, if opted, for spending needs. The life insurance savings can also qualify for tax breaks in some cases and, a plus, the death benefits (when paid out to the beneficiary) also will not be taxed as income.

Coverage Types

With universal life insurance coverage, a death benefit is payable upon a policyholder’s death. Spouses and family members of the policyholder are often the recipients of the benefits upon death, depending on policyholder choices. This insurance has the added distinction of giving policyholders help with expenses originating from such sources as higher education tuition, debt elimination, etc.

The Benefits

Good universal life insurance coverage can help in times of hardship. This insurance can be used to pay for medical costs should if a family member falls ill, for example, or in the covering of unexpected expenses such as engaging a legal team or the need to travel long distances for covered personal reasons. This kind of life insurance can even help pay for college, mortgages and more.






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