Does Universal Life Insurance Have Cash Value?
12689 POINTSview profileTed RatliffOwner, SFS Associates,Because of the way Universal Life works the answer to that question is usually yes but not always. Unlike Whole Life which has a set premium and is thus able to offer guaranteed cash values, a Universal Life policy does not have a set premium, the premium is flexible. You can add more to the policy or pay less into the policy. As long as your premium pays the expense charges and cost of insurance each year you will maintain your insurance.The problem with this is that these charges go up each year and eventually, like term, become unaffordable. That is why you must always put more into the policy than just the basic costs. A Universal Life has a Target Premium, meaning that if you put that amount into the policy it should be in good shape and there will be cash value. The more you put in, the greater the cash value.Answered on June 15, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaThere are three current assumption universal life policies for tax advantaged supplemental retirement income that use three crediting methods: interest rate, indice and separate sub accounts. You should design the policy with the lowest TAMRA compliant death benefit option to maximize the policy cash values. Accessing cash values have associated policy loan costs. If designed correctly, these universal life policies have the potential to accumulate cash values.Answered on June 15, 2013+01+1 this answer
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