Universal life insurance is a permanent; affordable policy that can help you protect your loved ones while building tax-sheltered wealth. Consider purchasing universal life insurance if you:
Whatever stage of life you’re in, including a universal life policy in your financial planning can help you protect your loved ones and ensure you leave a lasting legacy.
Universal life insurance is permanent life insurance. It’s designed to help you provide financial support to your beneficiaries. What makes universal life insurance unique is that it allows you to invest your money and build wealth over time - tax free. Universal life policies can be set up with level premiums to the age of 100.
Most policies allow you to customize a coverage plan to suit your specific needs. You can also choose what type of insurance proceeds, or death benefit your universal life insurance policy provides. A few common options are:
Generally, you can choose the insurance costs to be a level structure or yearly increasing structure.
With the level payment structure, you’ll pay higher insurance costs during the early years of your policy. This will slow the growth of your investment account value at first. Higher growth will occur in later years when insurance costs have lowered.
With the yearly increasing payment structure, your investment grows faster during the early years of your policy and slower in the later years as insurance costs increase.
In some cases, you can switch between the two payment structures. This way, you can use the yearly increasing structure to build up early account values quickly before switching to the level structure to grow your investment over time.
Ask your advisor about the payment options available to you and decide which one best suits your long-term goals.