Universal life coverage is a specific type of insurance that will give out a certain amount upon death. This may sound like general permanent life insurance, but there are a few differences. Senn Insurance Agency wants the people of O’Fallon, MO to understand the benefits of this coverage before deciding whether it’s for them.
The Savings Component
Like permanent insurance, there is some degree of savings with universal life coverage. The funds that fall under savings are invested under a fixed interest, which can help the insured predict precisely what will happen month after month. People who opt for this plan typically do so because it’s one of the more flexible types of life insurance. If any drastic changes occur, it’s often easier to alter the terms of a universal plan than a permanent plan. For example, if a person wants to switch funds between the life insurance and the savings portion, it’s a relatively simple process.
The insured is allowed to make changes to their policy, but they do need to be aware that this can ultimately change the death benefits. These changes may even affect the cost of the premium as well. Otherwise, this plan comes with more than a few perks for its holders. For one, people have some certainty in knowing that everyone will be financially protected (regardless of external events). Even if the benefits change, there’s no mystery behind the final number. Also, all money earned within the policy is tax-deferred. The same interest rate can be applied to the ever-accumulating cash value without being interrupted by taxes.
If you want to learn more about the benefits of universal life coverage, call Senn Insurance Agency in O’Fallon, MO today. We’re here to explain the critical types of coverages so you can understand your options.