I think that Universal Life Insurance is a good idea for those who want permanent coverage, but don't care whether or not their policy has much cash value. You can buy guaranteed no lapse UL policies at very competitive prices that are like that.
Indexed Universal Life can be a good choice for younger, healthy persons wanting to use their life insurance policy as a type of investment. IUL uses the stock market to generate what could be higher than normal cash value. But it cannot go below zero gains, so if safer than playing the market.
Finally, getting Universal Life at an older age, when the premiums are comparative to Term, is a good idea. UL gives you more flexibility so that you can decrease the face amount, increase or decrease the premium, and increase or decrease the duration of the policy very easily.
Renwanz Insurance & Financial Solutions, Carlsbad, CA
It is always tempting to jump on the lowest cost life insurance available - and that is generally term life insurance. The payout on term insurance is less than 2%. All too often, I meet people that have had a string of term policies throughout their life and see the premiums increase dramatically as they age to the point where they can no longer afford any term coverage. This could be solved with the purchase of a universal life policy.
Universal life insurance can last your entire lifetime without having to re-qualify. You never know when you will have a life-changing accident or health issue that can make qualifying for a new policy difficult (causing prohibitively expensive premiums) or even a "decline". Purchasing a universal life policy when you are relatively young can provide the necessary, guaranteed lifetime coverage at a low monthly premium and give your family a tax free death benefit upon your passing.
Under the category of "Universal Life" is Indexed Universal Life which can have significant advantages for folks looking to build up a cash value inside the policy that can help pay for college and even offer an additional income stream during retirement.
Life insurance and the type you purchase always comes down to the needs of the individual and their family. Consulting a qualified life insurance professional to determine which type best suits your situation is important.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Universal life insurance is a good idea if you need greater flexibility than is afforded by an ordinary whole life policy. With a universal life you can select the premium deposits within certain parameters and decide to suspend payments if there circumstances dictate. The flexibility combined with the potential greater return on the cash value are the key reasons why a universal life policy might suit your needs.
Manager, Marindependent Insurance Services LLC, California
Universal life insurance is a great idea is you like complicated contracts and potentially underfunded life insurance. It is also good if you are pretty wealthy and want to put money in a contract protected asset.
Although Universal Life insurance is considered a form of permanent life insurance, this is not completely true. It is only a permanent life product if you make the minimum projected payments each and every year. Those yearly payments will not necessarily be the same.
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Indexed Universal Life can be a good choice for younger, healthy persons wanting to use their life insurance policy as a type of investment. IUL uses the stock market to generate what could be higher than normal cash value. But it cannot go below zero gains, so if safer than playing the market.
Finally, getting Universal Life at an older age, when the premiums are comparative to Term, is a good idea. UL gives you more flexibility so that you can decrease the face amount, increase or decrease the premium, and increase or decrease the duration of the policy very easily.
Universal life insurance can last your entire lifetime without having to re-qualify. You never know when you will have a life-changing accident or health issue that can make qualifying for a new policy difficult (causing prohibitively expensive premiums) or even a "decline". Purchasing a universal life policy when you are relatively young can provide the necessary, guaranteed lifetime coverage at a low monthly premium and give your family a tax free death benefit upon your passing.
Under the category of "Universal Life" is Indexed Universal Life which can have significant advantages for folks looking to build up a cash value inside the policy that can help pay for college and even offer an additional income stream during retirement.
Life insurance and the type you purchase always comes down to the needs of the individual and their family. Consulting a qualified life insurance professional to determine which type best suits your situation is important.
Although Universal Life insurance is considered a form of permanent life insurance, this is not completely true. It is only a permanent life product if you make the minimum projected payments each and every year. Those yearly payments will not necessarily be the same.