Universal Life is a flexible life insurance policy that combines insurance coverage with a cash accumulation fund. This type of policy allows the owner to adjust the death benefit and/or premium payments, within limits, to meet the needs of the individual’s situation. Net premiums are applied to the cash accumulation fund, which earns a guaranteed minimum interest rate. You have the ability to withdraw from or borrow against your cash accumulation fund. Withdrawals and loans can decrease the amount of the available death benefit. Some policies will allow you to skip premium payments and deduct the administrative fees and death benefit costs from your cash accumulation fund.
Benefits of Universal Life
- Flexibility
- You may have the ability to start and stop making premium payments
- Insurance plus cash accumulation
- Tax Deferral – With any cash value life insurance policy, the growth is income tax-deferred. Policy loans and withdrawals* are generally non-taxable.
Contact me to see if this is the best type of life insurance for you at 225.622.6554 or trish@insurancelady.com.
