Universal Life Policy

Universal Life Insurance Policies

Chicago Insurance Advisors

What is Universal Life Insurance?
Universal Life Insurance is a type of insurance that is sometimes offered by employers as part of their workplace benefits packages. This insurance can also be purchased independently by individuals or families. The universal insurance policy dictates that any premium payments that are above the present cost of insurance are added to the policy's overall cash value.

Every month, the life insurance policy is credited by the insurance company with interest and the premiums you pay. They debit the current cost of insurance (based on your age and going rates) and any charged fees. This continues to happen every month until you stop making premium payments. At that point, the policy still exists but the cost of insurance and fees are debited each month automatically.

Who Is It For?
Life insurance that is universal may be useful to someone who is getting this policy through their company. It is not as reliable as whole life insurance, but it has more longevity than term life insurance. The premium payments remain the same for the rest of your life, which is helpful for people who do not want raised insurance costs as they get older.

How Does It Work?
As explained above, the universal life policy will have a premium payment that is credited into your account every month. This is the money you are paying the insurance company monthly. The insurance company will also add a sum of interest each month, while subtracting any fees they charge and their current cost of insurance. If you make premium payments each month, you should have a substantial sum after 10 or 20 years.

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