Buying Life Insurance

Universal Life Insurance

Universal life insurance was developed from whole life insurance. One benefit of purchasing a universal life insurance policy is that besides accumulating a tax-deferred savings, you may not have to pay premiums during the entire policy. If money to pay the death benefit and other related costs accumulates in the tax-deferred savings portions of the policy, then premiums may eventually not be required to keep the policy in force.

Essentially it is a way to use money to invest while having a life insurance policy. People most likely to benefit for this kind of life insurance are people who feel like they would need life insurance at least into their 70's. This is because the savings portion would have enough time to accumulate into an investment. If this is not needed, it might be more beneficial to get a term life insurance policy and a separate retirement investment savings account or 401(k).

With most companies, you will need to have the policy in force for at least 15 years to be eligible for any return of the policy. Also, you will need to have a knowledgeable insurance agent to go over all the details with you. Most insurance agents are happy to give you a free quote and answer any questions you may have about life insurance.