Universal Life Insurance at a Glance In the US, there are different types of life insurance policies offered by the insurance companies. One of the types of life insurance that you can buy is universal life insurance which is often abbreviated as UL. It is a special kind of permanent life insurance coverage in which the policy holder is offered the normal term life insurance protection in addition to the saving element that gives a cash value buildup when it is invested. In this type of insurance coverage, the policy holder is paid interest on the cash value which he/she can use to pay for the premium. BesidesHo, the policy charges and other fees taken from the cash value are debited from policy every month.
There are several benefits that could be gotten from this type of life insurance policies which mark it out from other life policies. In the first instance, universal life insurance coverage provides the usual traditional coverage to the insurer like other types of life insurance policies. But more than this, it provides taxadvantaged investment opportunity to the policy holder. The interest that is paid
on the cash value is not taxed. Universal life insurance policy is more flexible than others. You can have these types of life policies customized for you so that it will meet your long term financial goals. You can also modify the terms to suit your changing needs. In some circumstance, UL is protected from the creditors of the ownerâ€™s claims. In some jurisdiction, the benefits of the universal life insurance policy can be given to the beneficiary directly without requiring him or her to go through the entire process associated with probate. Avoiding the probate process will make it possible for the beneficiary not to spend any money and fees associated with probate. For more information about universal life insurance please visit http:// www.lifeinsurancerates.com
The policy holders are also allowed to withdraw from the cash value that has accumulated from their policy at any time. In other words, universal life policies coverage also benefits the policy holder and not just the beneficiary of the policy.