Reader’s Question:

What is Universal Life Insurance? What does it entail? How does it differ from Whole Life Insurance Policies? Please help. Thanks.

Rose

Duluth, MN

A Universal Life insurance is also a form of a permanent life insurance policy like the whole life insurance policy. However, a universal life policy offers more elasticity than the Whole Life policy. The elasticity of this policy means that if your universal life policy has an accumulated cash value, the insurance company will be give you the freedom on the amount and date you shall pay. This will now depend on you. How does this work? If you have with you an adequate amount of cash value to cover your universal life policies insurance charges, your premium coverage will be in effect. If you also have accumulated a larger amount of cash value to cover your policy premiums, then you do not even have to immediately pay. In so doing, the policy gives you an opportunity the date on when you shall pay your premiums as well as how much your annual premium payments will be. If ever there were any amendments to your necessities, you have an option to add to or subtract from your total death benefit values within the boundaries of your universal policy without requiring you to purchase a new one that shall require you to have a medical examination.