If the time has finally arrived in which you feel the need to investigate life insurance options, then you will likely come across universal life. This rather unique example (of what are several kinds of life insurance offerings) is frequently picked due to the fact that, in addition to the usual life insurance purpose of protecting your loved ones in the event of your passing, it also gives a level of flexibility like no other form of life insurance.
The Aforementioned Flexibility
Many will likely try to avoid the idea of life insurance simply because they are, frankly, uncomfortable, if not downright frightened by the possibility of locking themselves into a 30-year fixed premium. (Sometimes longer terms are offered as well.) This, of course, is certainly understandable given the uncertainty for any family planner in knowing what their future finances will be like, even just a few years into the future. However, good universal life policies give you the flexibility to change your future premiums and to accrue enough value over time to potentially even pay the premiums themselves, consistently and in total.
Another example of this flexibility is the invitation to sit down with your insurance provider and work out a scale that enables one to alter future rates. For instance, when one finds him or herself financially challenged, one can simply and easily lower premiums while still ensuring the policy remains perfectly in effect. Should you and your spouse feel ready to allocate more money into your premium payments, then you can pay larger monthly payments so as to more robustly build the policy’s cash value. As the policy value increases, you will at some point be able use this built-up cash value to pay for premiums.
Who needs it?
If you are a breadwinner and/or head of a household and wish to help ensure that your loved ones’ financial futures are assured, then this coverage is worth a serious look. Whether the loved one(s) are siblings, spouses, or children (and grandchildren) of the policyholder, this coverage will provide financial assistance in the aftermath of your passing. You can opt for any level of coverage wished, usually determined by your current needs and what you foresee as future expenses.
Some choose just basic policies to simply handle nothing more than funeral costs. Others might prefer more comprehensive policies that aid and abet their family by covering major costs like home mortgage payments or the need for long-term medical care. An insurance professional can assist you in navigating the process and determining the best coverage for your needs.