Frequently Asked Questions Universal Life Insurance

Choosing a life insurance policy is a big decision. It’s also one of the most important investments you can make for your loved ones. When you pass, your life insurance policy will pay a death benefit that will help your loved ones cover end of life expenses as more. If you are considering a universal life insurance policy, learn more from frequently asked questions.

Is universal life insurance a good investment?                                                                             

Term life insurance policies are the cheapest coverage you can get, but they expire after a certain term. This can be inconvenient if you outlive your policy and need to look at alternative options. As you age, life insurance becomes more expensive. Universal life insurance tends to be less expensive than whole life insurance, with similar benefits. Coverage lasts your entire life, so you never have to worry about renewing. You can also earn interest and accumulate cash value that you can borrow against.

What is the difference between a term life insurance policy and a universal life insurance policy?

Term life insurance is the most popular type of life insurance policy because it is flexible and affordable. However, it will end after a certain term – typically 10 to 15 years. If you outlive your policy, it can be expensive to find new coverage. Universal life insurance is more expensive but lasts your entire life. Each premium payment you make earns interest that goes towards your cash value. Request a quote from Insurance Best Prices today.

What are the key features of a universal life insurance policy?

You can cancel your policy and get some of your money back. There is cash value in your policy that you can borrow against. You have coverage your whole life.

Can I get a refund?

Unlike other life insurance policies, if things change and you want to cancel your policy, you can get some of your money back. How much you will get back, when, and more will depend on your insurance company. Some companies will only let you cancel the policy for a refund during certain years and how much you can get back varies from company to company.

Can my beneficiaries collect on my cash value?

The cash value you earn from your universal life insurance policy is separate from the death benefit your beneficiaries will collect when you pass. Depending on your policy, your beneficiaries may not receive any of the cash value you have earned on your policy.

Can I decrease my death benefit?

Your needs may change as you age. Your dependents may not need as many funds for example or your financial situation may change. With a universal life insurance policy, you may have the option to decrease your death benefit without having to purchase a new policy.

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