Universal Life Insurance (UL) combines two basic components—term life insurance and an accumulation fund.
It is a slightly more complicated form of insurance that does have certain benefits in terms of flexible payments, tax benefits and while not for everyone, in the right cases these policies can be very useful.
Generally speaking, Universal Life insurance allows for flexible premiums, meaning you could skip premiums or pay future premiums in advance, within certain limits. This premium flexibility depends largely on the cash value in the policy.
The policy will remain in-force as long as there is enough cash value to cover the monthly deductions for any particular month, but most people don’t fund them to just barely squeak by month-to-month.
These policies can vary greatly in their terms, rules and benefits but we at Lucas Insurance are experts at guiding you to the right fit for your financial needs and future.