Many varieties of different life insurance policies are available today. The most basic function of these policies is to provide a benefit to your loved ones or named heirs at the time of your death. The funds can help support your family's financial needs in a number of ways. Universal life insurance is one of the most popular options available, and is worth your consideration.
What is It?
First, know that universal life insurance premiums will go into your policy's account towards its value. It will earn interest there. After necessary fees and deductions, the value remains in place month to month. You may be able to use these funds to make withdrawals or loans, depending on your needs and on the policy’s guidelines. Universal life insurance can help pay for your family's loss of income, educational needs, mortgage costs and provides access to cash value during your life.
Before You Choose
Before selecting this form of life insurance, consider these three things:
- Do you need a policy that offers ample flexibility? This specific policy allows you to select the amount of insurance and premium payments, though minimums do apply.
- Do you want to be able to borrow from your policy throughout your lifetime? Though costs apply, this type of policy can meet that unique need because the cash value grows tax-deferred under income tax laws.
- Do you want to maintain coverage throughout your lifetime? Unlike term life insurance policies, universal policies remain in place as long as you make the premium payments.
Universal life insurance can be an excellent tool for those who want to use the funds to meet extended long-term goals, especially in relation to estate planning. Though it tends to cost more than other forms, it can offer more flexibility to meet an individual's specific financial needs. Take the time to compare it to other forms of life insurance before making a buying decision for yourself.
Is it time for you to get a policy? Call Sweet & Baker Insurance Brokers at (415) 512-2100 for more information on San Francisco life insurance.