Life insurance is designed to provide funds to your loved ones after you die, to help them maintain their standard of living, pay your final expenses, pay off mortgage loans or other debts or to provide legacy gifts to loved ones or organizations.
Universal life insurance is a type of permanent life insurance policy with features not included in whole life or term life insurance policies. In addition to providing a death benefit, universal life insurance also provides flexible premiums, and includes a cash value savings component inside the policy. That cash value can be used for any number of reasons, such as supplementing your retirement income, paying for children's educations or any other expenses.
When it comes to policy flexibility, universal life insurance, or UL policies, are considered to be the most flexible kind of life insurance. Rather than simply providing a fixed death benefit amount for a fixed premium payment, UL policies offer policyholders flexibility with both their premium payments and their death benefit amount.
People who own universal life insurance policies can make periodic adjustments according to their needs. UL policies also offer a built-in cash value, so you can set money aside on a tax-deferred basis, right inside your policy.
The reasons for buying universal life insurance are almost as varied as the number of policies available for purchase. For most people, providing a ready source of funding for grieving loved ones after death is an important consideration. When you die, will your loved ones be able to afford to pay your final expenses and debts and be able to maintain their current standard of living? If the answer is "no", it's time to explore various life insurance options to determine what makes the most sense for your situation.
Just like other forms of insurance, you'll need to apply for coverage and pay an initial premium. Once your policy is in-force, you'll need to make periodic premium payments to keep your life insurance benefits.
One of the best features of universal life insurance is flexibility with your premium. You can pay higher premiums to add to your policy's cash value when you're able. Or, if you need to reduce the premium for a period of time, you can make adjustments to the policy to accommodate that.
Coastal Life Solutions offers clients a different way to buy life insurance. Instead of trying to sell you on one type of insurance, one company’s policy or a specific death benefit amount, we believe it makes sense to spend some time getting to know you first. We'll ask you a series of questions to help identify what your insurance needs are and what type of coverage will best help you meet those needs. From there, we have access to a variety of insurance providers and will work to find you a policy that meets both your goals and your budget.
To learn more, and to get started with insurance quotes to protect what's most important to you, contact us to begin working with Coastal Life Solutions today.
Q: WHAT ARE THE ADVANTAGES OF UNIVERSAL LIFE INSURANCE?Universal life insurance is a popular type of policy for many reasons.
Q: DO I QUALIFY FOR UNIVERSAL LIFE INSURANCE?
When you apply for any type of life insurance policy, you'll need to answer questions about your health, including any medical conditions you have been diagnosed with or treated for. You'll also be asked questions about your occupation and lifestyle. The insurance company evaluates this information in determining whether to approve your new insurance policy. Many universal life insurance policies are offered with limited underwriting requirements, meaning you may not need to complete a physical examination as part of the application process.
Q: CAN I AFFORD UNIVERSAL LIFE INSURANCE?
Premiums for universal life insurance policies are typically higher than term insurance, but less than premiums for whole life insurance policies. The price you will pay for your policy will depend on a number of factors, including the face amount of the policy (the amount of the death benefit payable after your death), your age at the time you apply, and your overall health. If you are a non-smoker, your premiums will generally be less expensive than those paid by regular tobacco users.
One of the biggest benefits of universal life insurance is the built-in flexibility when it comes to your premiums. If you experience a temporary financial hardship after your policy has been in force for a certain length of time and have sufficient cash value inside your policy, you may be able to rely on that cash value temporarily to help you keep the policy in force until you can afford to resume the full premium amount again.
Universal life insurance is a smart choice for people who want some flexibility with their life insurance policies. Because your premiums will be based on your attained age and health at the time you apply, there's no better time to apply than the present.