Universal Life Insurance

There are two big ways that permanent life insurance is different from term life insurance. First, the policy is meant to last the rest of your life (as long as you make the required premium payments, of course). Second, part of the money you pay into your permanent life insurance policy is set aside in an account where it can grow cash value that you can tap into later on. There are several types of permanent life insurance, each with different advantages.

How Life Insurance Helps

Life insurance helps you plan ahead, so your family will be taken care of even if you can’t be there for them.
The cash benefit paid out by life insurance can protect a lot of important things:
  • If your spouse is depending on your income for retirement, it can keep those plans on track.
  • If you’ve got a mortgage, it can pay off that debt so your family won’t lose their home.
  • And if you want your kids to go to college, or you want to leave money behind for them, it can do exactly that.

The other great thing about the benefit of universal life insurance is that it’s generally paid out tax-free. So when you look at the amount of coverage you want to buy, what you see is what you get. There’s no guesswork about how much gets taken out in taxes after your life insurance benefits have been awarded.
As you can see, life insurance is very flexible. That’s why it makes sense for a lot of people, even if they all have different goals.

Who Needs Life Insurance

  • Parents who want to make sure their children are cared for
  • Those with debts they don’t want to pass on to loved ones
  • People who want to lock in a lower insurance rate while they’re young
  • Homeowners who want to make sure their family can pay off the mortgage if they should die
  • Families who rely on a stay-at-home parent
  • If you have a life insurance policy through your employer, because your policy does not go with you when you switch jobs
  • Entrepreneurs who want to protect their business
  • Those who want to leave a legacy for their children and grandchildren