Life Insurance Company

What is universal life insurance?

There is a variety of choices when it come to life insurance plans. Term and whole are the two main types of life insurance. Whole life insurance would be permanent coverage for your entire life. Term life insurance is fixed for a certain number of years, say 15 or 30. Both of these policies, once you build up the cash value, you may borrow against. Sometimes they even let you take some cash out of your policy.

The downfall of these types of insurance is what you may need can change over the course of your lifetime. If you have children you may want to raise your term life insurance just until they’re grown. Or if you want to pay off your house a little sooner you may want to raise your insurance until you pay it off. For normal people with regular changes companies are starting to get wise. They are now announcing they have policies called flexible universal.

Now, these are different with each company. What it is, is this you may fluctuate the amount of coverage you wish, within certain limits. It’s typically after a year when you can make changes. If your cash value is high enough you can, for example make smaller payments, if you need too. You may also add to your cash value. If and when the time comes for you to say, I no longer need this policy, then you may give it up and receive the cash value for it. The decision is yours. You also have the option of extra benefits and riders; adding coverage for your children, or receiving a monthly disability stipend.

Being an insurance agent myself, and reading all the material on the subject, I will go with a flexible insurance policy. Our needs vary from person to person, so I would recommend speaking with an agent about your options. Ask every question you need to until your leave there fully satisfied with understanding your policy. Make sure you deal with a reputable company, research them on the internet, the BBB etc. Remember, it’s your life, don’t let anyone tell you how to live it.

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