UNIVERSAL LIFE INSURANCE
UNIVERSAL LIFE INSURANCE
So you can have peace of mind.
Universal life insurance is a type of permanent life insurance policy. Unlike term life insurance, which lasts for a set period of time, universal life is designed to last for your entire life. Beyond providing permanent protection, a universal life insurance policy also offers a way to build up cash savings that can help cover your family’s financial needs. After you pass away, your beneficiaries will receive a cash payment from the policy called a “death benefit.”
An affordable, convenient option for many families.
With universal life insurance, you’ll pay monthly premiums that are divided between your death benefit and a cash value account. This interest-bearing account continues to grow over time as you add payments beyond your required minimum premiums. Some companies offer indexed universal life, which lets you put some of those dollars toward an equity index account, like the NASDAQ or S&P 500, without actually investing in the market. Eventually, you can use the savings in your cash value account to help pay for your monthly premiums or withdraw them to pay for other day-to-day expenses.
Universal life insurance is one of the most flexible types of permanent life insurance available. If you have changes in your financial situation – like losing your job or getting promoted – you can adjust your monthly premiums and may be able to adjust your death benefit amount to meet your needs better.
Universal life insurance can be a smart choice if you’re looking for permanent financial protection that can adapt as your needs change. With universal life insurance, you’ll receive:
As long as you pay your premiums and meet your policy terms, your beneficiaries will receive the policy’s full death benefit if you pass away. That means you and your loved ones can rest easy, knowing their financial future will remain secure.
When you buy universal life insurance, your life insurance company will guarantee a minimum interest rate for your cash value account. While your interest rate might go up and down over the years, it will never go below the minimum rate.
Like all types of permanent life insurance, any interest you earn from your cash value account generally isn’t taxed until you begin withdrawing from the account. That way, your funds can grow much faster over time.
With universal life insurance, you can choose to pay lower or higher monthly premiums to meet your financial needs. When you buy the policy, you can also choose to receive a fixed death benefit when you pass away, or a fixed amount plus your policy’s cash value. This flexibility is ideal if you expect changes in your finances over time, like having children or starting a new job.
| Term Life | Universal Life | |
|---|---|---|
| Length of Coverage | Choose the term that works for you (10, 15, 20, or 30 years) | Lasts your lifetime - as long as you continue your payments |
| Premiums | Typically the most affordable life insurance | More expensive than term for same coverage amount` |
| Medical Exam | Options to waive exam | Typically required |
| Cash Value | None | Policy may build cash value on a tax-deferred basis |
At eFinancial, we’re dedicated to providing personalized support as you shop for a universal life insurance or indexed universal life insurance plan. We know you have a lot of options when choosing an insurance company, so we’re committed to helping you find high-quality, affordable universal life insurance quotes that meet your needs.
Let eFinancial give you peace of mind about your loved ones’ financial future. We’re here to help.
Like all types of permanent life insurance, universal life is best for people who are looking for lifelong financial protection. Unlike term life, which lasts for a set period of time, universal life will never expire as long as you pay the required premiums. While you can expect to pay more than term life insurance, universal life offers a guaranteed way to cover costs like caring for a special-needs child, or to leave a legacy for your family. Universal life also offers the most flexibility of any permanent life insurance policy, making it a good bet for people whose finances may change over time.
Universal life insurance is just one of many types of permanent life insurance policies. Since they all offer guaranteed protection for your entire life and the ability to build cash value, the right choice for you depends on how flexible you want your premiums to be and how you’d like to grow your cash value.
Your policy will mature if your cash value grows to match your death benefit. Many life insurance companies design the plan to mature when you turn 100 years old. When this happens, your insurer will pay you an agreed-upon sum of cash and your coverage will end. If you’d like to continue your coverage, you can take out a loan against your cash value or use your cash value to pay for your premiums. We know this area of life insurance can get complicated, so our agents are ready to help you find the best solution for your needs.
With universal life, you have flexibility in the premiums you pay from year to year. There is a minimum dollar amount you need to pay each year to keep the policy active. Typically, policyholders pay more than these minimum premiums to build cash value in the policy. If you choose to pay a relatively low premium, your required premium may increase at some point, but your premiums will never increase based on your health.
Usually, yes. This exam is free to you and usually includes your height, weight, and medical history. A licensed professional may also take blood and urine samples. Your medical exam results can help determine your universal life insurance rates.
At eFinancial, we work closely with you to make scheduling your medical exam convenient and fast. A little preparation ahead of time can help you lock in the most competitive rates. Get our tips for taking a medical exam here.
Want to learn more? Request your free, no-obligation quote online or call 866-580-0290 to discuss your unique needs with one of our agents.
