Universal Life Insurance
Universal life insurance stands out as a permanent life insurance policy offering affordability compared to alternative options. Beyond offering a death benefit, universal life insurance grants flexibility in premiums and features a cash value savings element, useful for supplementing income and covering expenses.
What is Universal Life Insurance?
In addition to their cost-effectiveness, universal life (UL) policies are renowned for their unparalleled flexibility among life insurance options. Unlike plans that offer a fixed death benefit for a predetermined premium, UL policies empower policyholders with the freedom to adjust both their premium payments and death benefit amount.
Those who possess universal life insurance policies can adapt them periodically to suit their evolving needs. Furthermore, UL policies feature an inherent cash value component, enabling individuals to set aside funds on a tax-deferred basis directly within the policy.
Why Do I Need Universal Life Insurance?
The motivations behind purchasing universal life insurance are nearly as diverse as the range of policies accessible for acquisition. For many individuals, ensuring a secure source of financial support for their bereaved loved ones posthumously is a significant factor. Consider this: upon your passing, will your loved ones have the means to cover your final expenses and outstanding debts, while sustaining their current quality of life? If the response leans towards "no", it's advisable to explore the array of life insurance options available to discern the most suitable fit for your circumstances.
How Does Universal Life Insurance Work?
Similar to other insurance types, obtaining coverage for universal life insurance entails submitting an application and paying an initial premium. Upon activation of your policy, you'll be required to make regular premium payments to uphold your life insurance benefits. A standout aspect of universal life insurance is its premium flexibility. You have the option to increase premiums to bolster your policy's cash value whenever feasible. Conversely, if the need arises to reduce premiums temporarily, adjustments to the policy can be made to accommodate such changes.
Choose RFG For Universal Life Insurance
RFG Coverage presents clients with a distinctive approach to life insurance procurement. Rather than promoting a singular insurance type, a specific company's policy, or a predetermined death benefit amount, we prioritize understanding you as an individual. Through a series of inquiries, we strive to discern your insurance requirements and determine the coverage type that best aligns with your needs. Leveraging access to an array of insurance providers, we diligently seek out a policy that not only matches your objectives but also fits within your budget.
To delve deeper into the possibilities and initiate insurance quotes safeguarding what matters most to you, connect with us to commence collaboration with an RFG Coverage Agent today.
Frequently Asked Questions
Q: What are the advantages of Universal Life Insurance?
Universal life insurance is popular for many reasons. Affordability. Universal life insurance costs less than whole-life insurance policies. No-lapse protection. Some types of life insurance may lapse if you don't pay the premium on time. With universal life insurance, your policy includes some protection against lapsing by using the accumulated cash value to keep the policy in-force. Tax-advantaged savings. The cash value component of your universal life insurance policy provides a guaranteed minimum interest rate and offers tax-deferred accumulation. Premium payment flexibility. As your needs change, your universal life insurance policy premium payments and death benefits can be adjusted. Loan and withdrawal features. You may be able to take out loans or withdrawals from the accumulated policy cash value when you need them, which may be an attractive alternative to borrowing from a financial institution.
Q: Can I afford Universal Life Insurance?
Premiums for universal life insurance policies are typically higher than term insurance, but less expensive than premiums for whole life insurance policies. The price you pay will depend on the face amount of the policy (the amount of the death benefit payable after your death), your age at the time you apply, and your overall health. If you are a non-smoker, your premiums will generally be less expensive than those paid by regular tobacco users. One of the biggest benefits of universal life insurance is the built-in flexibility when it comes to your premiums. If you experience a temporary financial hardship after your policy has been in force for a certain length of time and have sufficient cash value inside your policy, you may be able to rely on that cash value temporarily to help you keep the policy in force until you can afford to resume the full premium amount again.
Q: Do I qualify for Universal Life Insurance?
When you apply for any type of life insurance policy, you'll need to answer questions about your health, including any medical conditions you have been diagnosed with or treated for. You'll also be asked questions about your occupation and lifestyle. The insurance company evaluates this information in determining whether to approve your new insurance policy. Many universal life insurance policies are offered with limited underwriting requirements, meaning you may not need to complete a physical examination as part of the application process.
Q: When should I buy Universal Life Insurance?
Universal life insurance is a smart choice for people who want some flexibility with their life insurance policies. Because your premiums will be based on your attained age and health at the time you apply, there's no better time to apply than the present.