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Three Key Advantages of Universal Life Insurance
While term life insurance is often the more affordable life insurance option, permanent life insurance policies such as universal life insurance do offer some admirable features. The policy spanning your lifetime is just one of the benefits of universal life insurance, but you can learn more about the key advantages of life insurance below.
1. Potential Return of Premium
Some universal life insurance benefits include a return of premium option, meaning if your needs change and you have to cancel your policy, you’ll get some of your money back. This feature depends on the features of your policy and the insurance provider. Many companies that offer this benefit only will let you cancel the policy in return for a refund during certain years and the percentage you will get back can also vary.
2. Cash Value
One of the advantages of purchasing life insurance is to ensure your loved ones receive a death benefit at the time of your passing. Permanent life insurance policies like universal also earn a cash value which can be borrowed from the policy. Some policies will also let you pay premiums using the cash value. It’s important to note, though, that the cash value is separate from the death benefit, so depending on your policy, your beneficiaries may not receive any of the cash value.
3. Permanent Life Insurance Coverage
As a form of permanent life insurance, universal life insurance is permanent and provides coverage for the span of your lifetime. Just like whole life insurance, as long as the premium is paid, the policy will only end when the insured passes away or surrenders the policy. If your needs change as time goes on, you might also have the option of decreasing your death benefit without having to purchase a new, separate policy. This could be beneficial if there was a change to your budget or if your financial responsibilities decrease.
Let SelectQuote navigate the benefits of life insurance for you.
While term life insurance tends to be the most affordable option for coverage, there are some people who might benefit from the consistency of permanent policies like universal life insurance. The easiest way to find out what is right for you is to let us do the leg work. In just minutes we can provide price and coverage comparisons from some of the most trusted insurance companies.