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Universal Life Insurance

Details about Universal Life Insurance

Universal life insurance is a life insurance policy that also serves a purpose as an investment tool for the policyholder. It is the most flexible form of life insurance because the policyholder can change the terms and specific attributes of the policy. Basically, this insurance is regular life insurance with an investment option.

Uses for Universal Life Insurance

Universal life insurance policies can pay for various things. Most often, benefits are used for funeral expenses and living expenses following the policyholder’s death. The cash value of the policy is sometimes used as collateral or as capital for investments.

This coverage is for anyone who needs a life insurance policy, but is also interested in the investment aspects. When the policyholder pays the premiums, the payments are pooled together in a fund for the policyholder. The money is used by the insurance company, and the funds gain interest.

The policyholder can use the interest to pay premiums or put to use for other purposes. They can also decide to pay higher premiums and accumulate more interest. The investment continues to grow until the policy is cashed out.

Beneficial to Policyholder

Universal life insurance is beneficial to have. Policyholder’s like the flexibility and the benefit of the investment. The investment allows the policyholder to benefit from the policy while still alive.

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