Universal Life Insurance

Universal Life Insurance

Universal life insurance is considered to be a type of permanent life insurance that allows for a tremendous amount of flexibility in your premiums. Universal life insurance gives policy owners the choice to pay a minimum premium to cover the cost of insurance or pay an extra amount towards having a cash value accumulation. Universal life insurance will also allow for the policy owner to use the interest from the cash value accumulation to help pay their premiums. Universal life insurance was built to give more flexibility by allowing the policy owner to move their money between the insurance and savings components of their policy. Universal life insurance allows for the cash value of their investments to further grow at a variable rate where it can be adjusted on a monthly basis.


Of course with all types of life insurance policies, there can be some pro and cons that you will want to discuss with your retirement planning representative to find what works best for you. The pros of universal life insurance can offer flexibility, where you can pay a higher or a lower premium, interest strategy choices, a permanent life policy as long as you pay the premiums, and an option where your cash value and death benefits are tax deferred from the IRS. Finally the cons of universal life insurance can end up being more expensive than other life insurance policies, you must repay with interest any borrowed cash value, you have to keep track of your cash value, and most of the interest rates for this type of life insurance policy are conservative at best, therefore not allowing you to make a whole lot of money off of this type of policy. Consult United Retirement Advisors Group to inquire about universal life insurance.