Benefits of Universal Life Insurance

Universal Life is similar in some ways to, and was developed from whole life insurance. The advantage of the Universal Life policy is in its flexibility and the potential for greater cash value growth. It offers you the chance to change the policy (within limitations) to suit your changing needs.

If things go well, you can increase the investment part of the policy to take advantage of higher growth rates. If you find yourself with financial difficulties, you can use the accumulated cash to continue premium payment.

Universal Life Insurance offers you more control over your insurance needs with the following benefits:

• Flexible Protection
• Flexible Premiums
• Tax-Free Death Benefits
• Guaranteed Return

Flexible Protection

Universal Life products give you the flexibility to choose the amount of protection that best suits your family or business. It allows you to increase or decrease coverage as insurance needs change. Increased coverage may be subject to underwriting requirements.

Flexible Premiums

With Universal Life insurance, you control the amount and frequency of payments. Looking towards the future you have the option to increase the premium or make lump sum contributions, subject to limits as specified in the policy. The extra dollars grow tax-deferred, and may increase the cash and death benefit values.

Tax-Free Death Benefits

Under current tax laws governing individual life insurance, life insurance proceeds are generally income tax free to the beneficiary.

Guaranteed Return

Normally, there is a guaranteed minimum interest rate applied to the policy. No matter how badly the investments go by the insurance company, you are guaranteed a certain minimal return on the cash portion. If the insurance company does well with its investments, the interest return on the cash portion will increase.