One thing that is certain and inevitable for all is death and it can happen any day and at any time. Though it is unpleasant to ponder or discuss with one’s family, it is something very important to consider for all involved and their futures. When someone who is loved dies, the surviving family members are often confronted with expenses for the funeral and any leftover medical bills. Additionally, the family can face financial hard times as a result of the loss of income resulting from the deceased family member no longer providing the lion share of income. The financial impact of death of such a person can affect a family detrimentally for years and years, but with the help of universal life insurance one can mitigate or even eliminate the financial challenges that a family will face in the aftermath of the passing of a loved one. Additionally, it can assist the insured with financial planning during his or life as well.
Universal life insurance is a unique kind of protection as it also is a possible investment vehicle. With a policy like this one can make premium payments and develop a promised level of payout to the beneficiaries upon the policyholder’s death. Some beneficiaries can utilize these funds to, for example, finish off a mortgage or pay off other debts. Others may choose to invest the returns and use the resulting investment income to make up for any lost income. These are just a few of the many options available through death benefits that can be put to use to improve the surviving loved ones’ quality of life. Usually, this kid of policy will not have a specified term length and will remain in effect for as long as the policy is paid for and remains active.
Universal life coverage can give you far more than just death benefits. With each payment of a premium the cash value accumulates and accrues over time as a result of the earned interest. This money value can later be borrowed against or completely withdrawn from the policy, should the need arise. Uses might include a new home’s down payment, retirement income, for a dream vacation or for any other many potential purposes.
When you buy a universal policy, remember that both the level of death benefits and the cash value amount that accrues with each premium payment can be moved up or down. This provides the covered person with great flexibility in how benefits are realized and how much the cost of the policy can be for budget management.