Time To Review Your Universal Insurance Policy
Whole life insurance caters to long-term goals, offering consumers consistent premiums and guaranteed cash value accumulation. Universal life insurance gives consumers flexibility in the premium payments, death benefits, and the savings element of their policy.
3 Coverage Enhancements to Look for in BOPs This Year
These two types of life insurance fall under the blanket of permanent life insurance. Unlike term insurance, which guarantees a death benefit payout during a specified period, permanent policies provide lifetime coverage. If you want to cancel your permanent life policy, you will receive the policy's cash value to use however you want; such as to address an emergency.
- Whole life policies offer annual dividends, which can be accumulated or taken in cash.
- Universal life insurance policies allow those insured to stop paying premiums in the event of any financial problems.
- You can borrow against the cash value of a whole or universal policy.
These policies are typically comprised of two parts: a savings or investment portion and an insurance portion. Whole life insurance covers you as long as you live. You have to pay the same amount of premium for a specific period to receive the death benefit. Normally, this policy remains intact for the rest of your life, regardless of how long you may live. This policy is highly suitable for long-term responsibilities like a surviving spouse's income needs and/or post-death expenses.
Whole Life Insurance
One of the features of this type of life insurance is that it combines coverage with savings. As a result, you may end up paying higher premiums in the beginning, compared to a term life insurance policy.
One of the features of this type of life insurance is that it combines coverage with savings. As a result, you may end up paying higher premiums in the beginning, compared to a term life insurance policy.
Here's how it works. Your insurance company puts part of your money into a high-interest bank account. With every premium payment, your cash value increases. This savings element of your policy builds up your cash value on a tax-deferred basis. In a way, the presence of guaranteed cash values makes this policy worthwhile because you can borrow against your cash value or surrender your policy to get the cash value.
