What is Universal Life Insurance?

Universal life insurance was developed in the late 1970s to overcome some weakness related to the whole and term life insurance. As with other types of life insurance, you pay regular premiums to your insurance company, in exchange for the which the insurance company will from pay a specific benefit to your beneficiaries upon your death. Like other types of life insurance, you pay regular premiums to your insurance company, in return for which the insurance company will pay special benefits to your beneficiaries after your death.
 

As with whole life insurance, a portion of EACH payment goes to the insurance company to pay for the pure cost of insurance. As with life insurance, a portion of each payment goes to the insurance company to pay the cost of pure insurance. The remainder is invested in the company's general investment portfolio, with the potential to build cash value. The rest is invested in the company's general investment portfolio, with the potential to build cash value.

Most universal life policies pay a minimum guaranteed rate of return. Most universal life policies pay a minimum guaranteed rate of return. Any returns above the guaranteed minimum vary with the performance of the insurance company's portfolio. Any returns above the guaranteed minimum vary with the performance of insurance company portfolios. The sectoral policy has no control over how these funds are invested; funds are managed by the insurance company's professional portfolio managers. policyholders have no control over how the funds were invested, the funds managed by professional portfolio managers of insurance companies.

However, universal life policies are very flexible. However, universal life policies are very flexible. As the policy owner, you cans vary the frequency and amount of premium payments and Also Decrease or increase of the amount of the insurance to suit changes in your situation. As the owner of the policy, you can vary the frequency and amount of premium payments and also increase or decrease the amount of insurance against changes in accordance with your situation.

For example, if your financial situation improves significantly, you cans increase of your premiums and build up the cash value more rapidly. For example, if your financial situation improves significantly, you can increase your premiums and build cash value faster. On the other hand, if you find yourself under a financial strain, you cans reduce your premiums, or even you May be Able to deduct premium payments from the cash value of the policy. On the other hand, if you find yourself under financial pressure, you can reduce your premium, or you may even reduce premium payments from the cash value policy. Of course, changing the premium or withdrawing part of the cash value in your policy affect the rate at will from the which your cash value accumulates. Of course, changes in premiums or withdraw part of the cash value in your policy will affect the rate at which your cash value accumulates. It May Also reduce the size of the death benefit. It also can reduce the size of death benefit.

Any cash you withdraw from your universal life policy is Considered "base-first." You will not incur a tax liability Until your withdrawals exceed the premiums you've paid into the policy. Each time you withdraw cash from your universal life policy is considered "base-first." You will not be subject to tax liability until your withdrawals exceed the premiums you have paid into the policy. Any That amount exceeds the premiums will from be taxed as ordinary income  "The amount that exceeds the premiums will be taxed as ordinary income"