Universal Life

Universal life is a permanent life insurance product that guarantees coverage for a person’s entire lifetime as long as the premiums have been paid. Universal Life Insurance is a product that pays a beneficiary a predetermined sum of money upon the death of the insured. The policy provides a monetary benefit to pay off debt obligations, final expenses, and income replacement. Universal life is commonly known as a flexible premium whole life policy. This policy allows the insured the benefit of paying a different (flexible) premium amount based on the minimum cost of the insurance (as defined by the company) and the IRS guideline/modified endowment contract limits. Universal life policies offer cash values with a guaranteed interest rate - usually 2-5% depending on the company. Cash Value accounts can usually be borrowed from.

Universal life insurance companies often offer the ability to add additional riders such as paid up additions, coverage for a spouse or children, options to buy additional insurance, and a waiver of premium for disability.