Universal Life Insurance

Information about Universal Life Insurance

Universal life insurance is a form of life insurance that allows policyholders to access the funds. The policy also pays a benefit to beneficiaries after the policyholder’s death. It’s basically the same as traditional life insurance, except for the withdrawal option. Work benefits offered by employers can be linked to a life insurance plan with a universal structure.

Who Needs It?

Universal life insurance is recommended for working adults who have children. During financial difficulties, the policyholder can withdraw funds from the life insurance policy. Loans can also be taken in order to pay for personal bills. This provides a safety net to families facing an uncertain future due to job losses or other circumstances.

The policyholder must pay a premium to keep the policy active. This sum can be paid monthly or as a yearly lump sum. During the course of the policy, money can be added and withdrawn as needed. The IRS can’t tax the money, and universal life insurance can earn interest.


The best thing about this insurance is the convenient access to cash and money. The death benefit is also a benefit of this plan, and can result in large sums of money when the insured person dies. To save money on monthly premiums, some couples choose a survivorship and joint option.

Universal life insurance really has no downside. It is a good alternative during financial hardships. In the event of job loss, the money can make things easier and help avoid situations such as bankruptcy. The interest growth also provides a steady source of profits. Then of course, beneficiaries receive a benefit upon the policyholder’s death.