People often ask us, “Is universal life insurance a good choice for me?”
This is a good question. A universal life policy is a form of permanent life insurance.
The appeal of universal life includes a variety of payment options, potential for cash value growth and the flexibility to change the death benefit in the future.
At time of purchase, the insurance company establishes a recommended premium for you to pay based on mortality charges, policy expenses and interest rates.
The company also sets a minimum interest crediting rate as outlined in the policy.
If the insurer’s portfolio earns more than the minimum interest rate, the company credits the excess interest to your policy’s cash value, which grows tax-deferred.
While premiums for universal life coverage can be significantly lower than for whole life policies, there are also more ‘moving parts’ to a universal life policy that are important to understand.
This is a quick overview. To be sure you have the best life insurance for your situation, please call or text Billy at (704) 707-5788.
Billy Gwaltney
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