These policies are ‘adjustable’ over the life of the policy, enabling you to adjust your
death benefit, and your premiums, as your life changes. However, you will pay a price for that flexibility, and
when you ‘adjust’ your policy, you may find that your premiums will go up significantly depending on your age and
lifestyle at the time of that adjustment.
Universal life policies are a great way to get a guaranteed death benefit and a ‘savings
plan’ at the same time.
Along with providing a death benefit, universal life insurance also incorporates a savings
vehicle.
The money in the policy is tax-deferred so it is like having a savings
account.
And depending on how much money is in the tax-deferred account, you may not have to pay
premiums for the entire term of the policy.
If you accumulate enough money to pay the death benefit and other costs (like administrative
fees and premiums) you may eventually be able to stop making policy payments.
Because a universal life insurance policy is an investment policy AND a life insurance
policy, you might want to consider this kind of coverage to get you through to age 75 or 80.
This policy will ensure complete coverage for your beneficiary upon your death, and provide
the opportunity to fund your own premium payments from the investment proceeds, so that you may not have to make
payments as you get older and your annual income is reduced.
Before you buy this kind of policy, be sure you plan to keep it in force for at least 15-20
years, because it will take that long to get a return on the amount in the tax-deferred coffer.
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