You may think that life insurance is something you only need for your first few years of work, but the reality is that most people need coverage for a lifetime. After age 65, life insurance can help you:
- Protect your loved ones from your final expenses.
- Provide a comfortable retirement for a spouse or partner.
- Leave a legacy to help support your children or grandchildren.
Universal life insurance is a type of permanent life insurance that provides coverage for a lifetime. This type of policy is known for its flexibility and for the financial advantages that you can benefit from during your lifetime. In celebration of Life Insurance Awareness Month , let’s explore three advantages of universal life insurance.
1. Possibility of increasing or decreasing the death benefit
Many universal life insurance policies give you the option of increasing or decreasing the policy’s death benefit (the amount of money paid to your beneficiaries when you die). Increasing the death benefit could be helpful if you anticipate racking up significant medical bills in the future or simply want to leave a larger financial legacy. Lowering the policy’s death benefit could be helpful if you no longer need as much coverage. Either way, this flexibility is an asset when planning your estate to meet your goals and address your concerns.
2. Opportunity to accumulate cash value
Universal life insurance accumulates cash value through money set aside with each premium payment. The money accumulates over time on a tax-deferred basis through interest based on the stock market, an index, or investments, depending on the policy. Tax deferral means that investment earnings accumulate tax-free until the funds are withdrawn. As the policyholder, you have access to its cash value, with the ability to borrow or make balance withdrawals. You can use the cash value to supplement your retirement income, help cover medical expenses, or meet other financial goals.
3. Flexible premium payments
A life insurance premium is the amount of money paid to a life insurance company in exchange for a policy/coverage; premiums are often paid monthly. Universal life insurance is unique because many policies have flexible premium payments that you can increase, decrease, skip or stop at any time, as long as your cash value can cover the monthly deductions from the policy. This could be useful if you need to skip a payment around holidays or when taxes are due. On the other hand, you can increase your premium payments when you have additional money available to prepare for times when money is tight.
Learn more about universal life insurance!
Life Insurance Awareness Month is a great time to review your life insurance needs. Do you have enough coverage to meet your family’s needs or is it time to consider coverage for the first time? Our agents are here to help you learn more about the control, flexibility, and financial security of universal life insurance.
