• Universal Life is a type of permanent life insurance based on a cash value. Along with providing a death benefit, universal life insurance also incorporates a savings vehicle.
  • The universal life policy allows you to change the amount of insurance as your needs for insurance change. Some changes require underwriting approval.

The cash value of the policy is credited each month with interest, and the policy is debited each month by a cost of insurance charge. The interest credited to the account is determined by the insurer; sometimes it is set to a financial index such as a bond or interest rate index.

A universal life insurance policy is both a life insurance policy and an investment vehicle. Only people who  want life insurance into their 70’s would actually benefit from a universal life policy. It would take awhile to give the savings portion enough time to accumulate into an investment. Since most people will not need life insurance that late in life, it’s typically more beneficial to purchase a term life insurance policy and plan for retirement savings with a 401K or other higher yielding investments.

Call Jeff Pennington today at 1-877-221-6198 to discuss your needs and get a selection of life insurance quotes for your situation. Jeff can answer all of your insurance questions and will provide friendly personal advice.