The major players in life insurance are typically term and whole life insurance policies. However, the option that many people choose, especially those that know a bit about life insurance, is a Universal Life Insurance policy. There are a number of benefits that come from this policy that bridge the gap between term and whole life insurance. Here are a few things to keep in mind.
Like whole life, Universal Life Insurance offers benefits that are payable on death. It’s also a permanent insurance policy. In addition, this policy includes a saving element where money is accrued as well as interest. This is also very similar to whole life insurance.
Where universal life insurance resembles term insurance is its low cost. Whole life is considered the better type of coverage when compared to term life insurance, but it is also more expensive. Many people choose term life insurance, not necessarily because the terms are better but because it is more affordable and offers what they’re looking for most out of life insurance, which is a significant financial payout upon death.
Another thing that makes universal life a popular option is that the owner of the policy has the ability to change the various aspects of that policy pursuant to their life situations. For example, whole life premiums may get to be a bit high for older people who are living on a fixed income. In these cases, especially if the policy has been active for many years, there is likely a large amount of savings built up and earning interest. In these situations, the interest earned from the savings can go towards paying the premiums if the premiums have become unaffordable.
The fact is there are many benefits that exist with universal life insurance, which is why so many people choose it. If you don’t have life insurance, it’s important to make sure your family and loved ones are financially cared for when you pass away. It’s also good to have extra avenues of income through investments later on in life. Fortunately, universal life offers all of this plus much more. If you’re interested in this type of policy and you want to know more about it, your best option is to contact Insurance Offices Texas to learn more about what universal life can offer you and your family. You can also follow them on Twitter.