page loader

Universal Insurance

The Importance of Universal Life Insurance


This is a specialized kind of life insurance that is designed for working adults. It is not uncommon for an employer to partially contribute to these policies as a work benefit for employees. This kind of life insurance is distinguished by the fact that it can earn interest on accumulated funds, which are also available for withdrawal in times of need.

Who needs it?

Good universal life insurance is arguably most beneficial for adults with spouses and certainly those with children. It can pay out notable financial benefits to one’s family especially in challenging times. Upon achieving retirement age, those who carry this insurance will commonly adjust their policies as a result of their changed employment status. Keep in mind that generally a universal life policy is considered an investment vehicle that appeals to those still of working age rather than the elderly.

How it operates

A policyholder is obliged to pay a premium that is determined by the account is initially created. Funds from the policy can become available over time for withdrawal should there be a need for personal usage. Eventually, the premium amount and the deductions will be modified by how the money is used over time for savings and, if chosen, for spending. The life insurance savings can also qualify for tax breaks in some case and the death benefits (when paid out to the beneficiary) will also not be taxed as income.

Different Kinds of Coverage

With universal life insurance, a death benefit is made available upon a policyholder’s death. Spouses and family members of the policyholder can be equal or otherwise in the receiving of said benefits depending on policyholder preference. This insurance has the added distinction of providing to policyholders for use such as higher education tuition costs, payment of debt, etc. It is quite flexible.

Big Benefits

Life insurance of the universal coverage designation can financially help in times of hardship. This insurance can be utilized to pay for medical expenses should someone fall ill, for example, or in the covering of unexpected expenses such as hiring a legal team or the need to travel long distances for personal matters. This form of life insurance can even help pay for college, mortgages and more.