Like whole life, Universal Life Insurance coverage is a permanent life insurance policy. You pay the premiums and fulfill the other obligations and you are covered until you die. However, unlike whole life, a Universal Life Insurance policy offers attractive options for those who desire not only protection for their family but cash value to be accessed during the policyholder’s life.
Currently there are 15 states that extend their open enrollment periods while 37 share a common time for new enrollment for health insurance and policy changes.
In general, the period runs for 6 weeks beginning in November with coverage beginning in January of the following year. Medicare, employer based and individual market health insurance have health insurance open enrollment periods that differ.
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The most obvious benefits is the cash value component which can be withdrawn or borrowed against the cash value of the policy. Less obvious benefits include flexibility options with both premiums and death benefit.
People who choose the Universal Life policy wish to combine the protection of a life insurance policy for their heirs as well as providing long term savings goals. Tax deferred savings that can provide you with income to be borrowed against a time of need or available to supplement retirement income while retaining a death benefit.
As with all financial decisions, it is generally wise to seek the advice of an expert with whom to discuss your financial and insurance goals. Let ConsumerCoverage be your connection.
While Universal Life is a permanent life insurance policy, it differs by being divided into two components: a cost of insurance (COI) portion that covers the death benefit and a cash value component. In Universal Life policies both can be adjusted and should circumstances require it, only payment of the COI portion need be paid to keep the policy in force.Costs of the COI portion of a universal life policy are dependent on age, insurability and insured risk amount. Over time the cost of insurance will increase but may be covered by the cash value if that is needed.
There are several different forms that universal life policies may take:
Differences between this form of life insurance and other life products is the adjustable nature of a universal life policy. Offering the greatest flexibility for the policyholder as needs and conditions change, universal life is not a buy it and forget it policy but one that remains flexible and subject to change over its entire life.
Still have questions that need answers contact us at ConsumerCoverage and we’ll connect you to someone to provide answers. Universal Life Insurance quotes can be found here.
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Margaret Huntley Margaret Huntley is a creative writing and philosophy student at Western University. She has been working as a freelance writer for over two years and has written about everything from insurance, to poker, to health and wellness for international businesses.
