Universal Life Insurance

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Universal Life Insurance In is a type of permanent life insurance. With a universal life policy, the insured person is covered for the duration of their life as long as they pay premiums and fulfill any other requirements of their policy to maintain coverage. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest. Universal life insurance offers lifelong coverage, provides flexibility when it comes to paying premiums and choices for how the policy's cash value is invested. A standard universal life insurance policy's cash value grows according to the performance of the insurer's portfolio. Yes an insured can cash in a universal life insurance policy but it is determine by many factors, Withdraws from a policy's cash value reduces its death benefit, and have varying tax implications. With universal life insurance, you can receive lifelong coverage. The life insurance payout, called a death benefit, is paid to your beneficiaries tax-free. Some universal life policies also build cash value, with gains growing tax-free. Policyholders can have flexible premiums or change their death benefit amount, which differs from other types of permanent life insurance policies. Plus, the cash value component offers potential to earn more interest – however, on the flip side, the value can go down over time. Which is better; whole life or universal life? It will depend! Whole life insurance offers consistent premiums and guaranteed cash value accumulation, while a universal policy provides flexible premiums and death benefits. You can borrow against the cash value of a whole or universal policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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