Universal Life Insurance
What is Universal Life Insurance?
Universal Life (UL) is a form of permanent life insurance. If your UL policy is in force at the time of the insured’s death (second death for joint life policies), policy proceeds will be paid in accordance with the terms of the policy to the beneficiary you designate. UL policies offer a valuable death benefit and provide the opportunity to build cash values that you can borrow or withdraw.
With certain limits, you can choose the premium you wish to pay and this determines how the policy values develop. Each policy month, a monthly deduction to cover the cost of the insurance protection is deducted from the policy value. Transamerica was one of the first major companies to develop and promote universal life insurance.
The Advantages of Universal Life Insurance
The advantage over other forms of permanent insurance is that universal life insurance gives you more flexibility over your policy to assist you in meeting your financial goals. Within certain limits, you can choose the amount, method and timing of your premium payments. UL is also an “interest sensitive” product. This means that the interest rates credited to policy values will change over time.
Flexibility of payments, tax-deferred cash value accumulation, and coverage options (subject to contract requirements) are the primary advantages over term insurance. Because of these advantages, universal life can be used in estate planning and retirement planning, offering the policy owner a variety of options.
Universal Life - New York
New Yorkers can get a universal life insurance policy that offers the protection you're looking for in a permanent life insurance policy and the flexibility you need to adapt to a lifetime of changes.
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