How am I Billed for Universal Life Insurance?
If you buy a universal life insurance plan, you are buying what is known as permanent insurance. That means what you think it means: it’s a life-long, open-ended commitment that only comes into play when you die. Like just about all insurance policy payment plans, you’ll pay your universal life insurance on a monthly basis. That’s what’s called your monthly premium. However, you can also pay for your universal life insurance by paying a single lump sum, which is termed a single premium. Or, you can pay for your universal life insurance with a fixed-premium payment plan. These payments will be smaller than a single premium payment but will pay out the universal life insurance total over a fixed period of years – ten, for example.
Before you buy universal life insurance, be sure to consult with a financial adviser as well as a life insurance or universal life insurance specialist. You need to determine which life insurance policy is best for you and your needs, and with professional advice you will be less likely to make costly mistakes.
Life Insurance is Worth It
You may be thinking that when it comes to life insurance, you just have to bite the bullet and spend the money you need in order to protect your loved ones in case you die. The idea of your loved ones without any cash is too unpleasant to think about. So life insurance is lumped in there with other must-have expenses that don’t generate any wealth for us, like heating bills and car payments. You may think that, of course, but you’d be wrong. With universal life insurance, for example, the money you put into it accrues in value, and can be accessed if you need it.