Univeral Life Insurance
Universal life insurance is a type of permanent life insurance offering the flexibility to change your death benefit and adjust your monthly premiums. Like whole life insurance, universal life insurance coverage lasts your entire lifetime and builds cash value that you can borrow against while you’re alive. The difference is, as your finances fluctuate, you can alter or potentially skip premiums on universal life policies and increase or decrease the payout amount to your beneficiary.
What Can Universal Life Insurance Cover?
Here are some typical uses for universal life insurance:
- Loss of income
- Mortgage costs
- Estate planning
- Educational needs
Benefits of Universal Life Insurance*
Universal life policies can empower you with several unique advantages:
Flexibel Premiums
As the cash value component of your policy builds, you have the power to adjust your premium payments and even use it to pay your monthly premium. Eventually, your cash value policy could build into a zero-cost policy, where all premiums can be paid from the cash value that has built up, while keeping the same payout amount (death benefit).
Length of Coverage
With permanent life insurance, you get benefits no matter when you pass away, as universal policies will last for your entire lifetime (assuming you continue to make payments).
Tax-Free Growth and Death Benefit
The payout to your universal policy’s beneficiary is typically tax-free. Additionally, the growth within your policy’s cash value component is generally tax-free.
Loan Collateral
You can borrow against the value of your policy at a rate set by your insurer.
What Can Life Insurance Cover?
When you pass away, the beneficiary (or beneficiaries) on your life insurance policy is the recipient of your death benefit. The amount of money they receive depends on the plan you choose, but the funds can be paid in one lump sum and be used for various expenses:
Mortgage Debt
Life insurance could allow your family to payoff the mortgage on your home—this could be particularly important if they depend on you to make the monthly mortgage payment.
College Tuition
Tuition expenses for your family may be years away, but it’s important to factor in the cost of higher education for your loved ones when choosing a life insurance plan.
End of Life Costs
Death, unexpected or not, inevitably creates expenses for the deceased’s loved ones. Life insurance can be used to cover burial and funeral bills.
Daily Expenses
From grocery money and utility bills to credit card balances and daycare costs, a life insurance payout can help your family stay afloat when they’re suddenly without your income.
Contact Marshall Insurance: 814.363.7556 | Email Us
*Coverages and options may not be applicable to all carriers.
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