Universal Life Insurance 101

by owner

Category: Our Blog

If you are looking to purchase a CT life insurance policy, you have a lot to consider.  Whole life? Term life? …Have you considered a Universal life policy?  Universal life insurance is quite popular for people looking to ensure that their loved ones are taken care of in the event of an unforeseen death.  Unlike Term life insurance,  Universal life insurance is a whole life policy that accrues a cash value over time which can be borrowed against.

The difference between a regular Whole life policy and Universal life is that with Universal life your premiums are adjustable.  If you decide to pay more one month, that extra will be added to your cash value or credited to the cost of insurance if another payment is not made.

This may be a good option if you are looking for a whole life policy, but want to have some flexibility in payments.  Your job may be seasonal or you may have unpredictable paychecks each week.  You might want to have the option of paying a little more one month than the next.

Universal life insurance is also flexible in other areas. You can change how much coverage you want at almost any time.  Like other whole life policies, you may pay more than you would for a term life insurance policy.  However, you will be able to accrue cash value which could be used in your future before you pass away.  As an added bonus, most benefits paid out are tax free in most situations.

Talk with your CT life insurance agent today.  Find out if a Universal life insurance policy is right for you and your family.  You may find it to be a perfect fit for your lifestyle.  If not, you can discuss all your life insurance options available to you.

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