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The Pros and Cons of Universal Life Insurance

Universal life insurance coverage is a type of flexible permanent life insurance policy that has several pros and cons. Below, we take a closer look at this type of policy to help you decide if it is a good choice for you.

Young family takes a mountain hikePros of Universal Life Insurance

  • Universal policies offer more flexibility than whole life insurance with respect to premiums.
  • Initially, universal life insurance is less expensive than whole.
  • Universal policies build cash value (like whole life insurance)

Cons of Universal Life Insurance

  • It may be less expensive than whole, but term life insurance is still usually more affordable than most universal policies.
  • Universal policies are more complicated to understand than a traditional term policy.
  • This type of policy requires maintenance and oversight, as premiums, cash value component and death benefit can be changed.

Who Should Buy Universal Life Insurance?

If either of the following apply to you, you may want to consider buying a universal life insurance policy.

  • You want a permanent life insurance policy, but your financial circumstances tend to fluctuate (you have less money to spend now, but will have more later in life).
  • You have the ability to pay it back, and want to use your policy to borrow against without any tax implications.

To learn more about your life insurance options, speak with a licensed agent at 1-800-966-7169.

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected. 

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