You may think of life insurance as something only needed during younger working years, but the reality is, most folks have a lifelong need for coverage. After age 65, life insurance can help you:
- Protect loved ones from your final expenses.
- Provide a comfortable retirement for a spouse or partner.
- Leave a legacy to help support your children or grandchildren.
One type of permanent life insurance that provides lifelong coverage is universal life insurance. This type of policy is known for its flexibility and financial advantages that you can benefit from while you’re still alive. In celebration of Life Insurance Awareness Month, let’s explore three advantages of universal life insurance.
1. Ability to increase or decrease the death benefit
Many universal life insurance policies give you the option to increase or decrease the policy’s death benefit (the amount of money that’s paid out to your beneficiaries when you pass away). Increasing the death benefit could be helpful if you foresee accruing significant medical bills in the future, or you simply want to leave a larger financial legacy. Decreasing the policy death benefit could be handy if you no longer need as much coverage. Either way, this flexibility is an advantage while working to meet your goals and concerns during estate planning.
2. Opportunity for cash value accumulation
Universal life insurance builds cash value through money that’s set aside with each premium payment. The money accumulates over time in a tax-deferred environment through interest based on the stock market, an index, or investments, depending on the policy. Tax deferred means the investment earnings accumulate tax-free until you take withdrawals. As the policyholder, you have access to your cash value, with the ability to take loans or withdrawals from the balance. You can use the cash value to supplement your retirement income, help cover medical expenses or achieve other financial goals.
3. Flexible premium payments
A life insurance premium is the amount of money paid to a life insurance company in exchange for a policy/coverage; premiums are often paid monthly. Universal life insurance is unique because many policies feature flexible premium payments that you can choose to increase, decrease, skip or stop at any time as long as your cash value can cover your policy’s monthly deductions. This could be helpful if you need to skip payment around the holidays or when taxes are due. On the other hand, you can increase your premium payments when you have extra money on hand to prepare for times when money is tight.
Learn more about universal life insurance!
Life Insurance Awareness Month is a great time to review your life insurance needs. Do you have enough coverage to meet your family’s needs, or is it time to consider coverage for the first time? Our agents are here to help you learn more about the control, flexibility and financial security of universal life insurance. Fill out this form and an agent will get in contact with you!