Can I Withdraw Cash from a Universal Life Insurance Policy?

With universal life insurance, you’re putting money aside through premium payments to the issuer of your universal life insurance policy. Every time you pay your premium, part of that payment goes to the insurance, another part goes to processing fees, and the remainder goes into an account that earns interest. That interest rate is determined by the issuer of your universal insurance policy. Very often, it will be linked to a major interest rate index, and will rise or fall along with market circumstances. So, this money in your universal life insurance policy account is working for you. Many insurance companies will also take the money from this part of your universal life insurance policy and invest it in the stock market or other financial market. Depending on the rules and regulations of your universal life insurance policy, you can access the money in it whenever you need to. If you leave the money alone it will all be given out as a benefit when you die. If you take out half of it, the remaining half will go to the benefit.

If you’re like most Americans you’re in a state of worry about the economy. Everyday it seems like we’re waking up to worse and worse economic news. Millions of people have lost their jobs in the past year alone, and no one can say with any true certainty that their position will be immune to the economic crisis. This means that everyone is looking for ways to make sure that they don’t have to experience their own personal worst-case scenario. One way that people are protecting themselves is by buying universal life insurance. With universal life insurance, you are not only protecting your loved ones financially should you die, but you’re creating a financial account that you can draw on should you have to. If you lose your job in this economic chaos, withdrawing cash from your universal life insurance policy could really help you weather the storm.

Before you withdraw cash from your universal life insurance policy, or even get it in the first place, be sure to consult with a financial advisor. Universal life insurance is the right idea for some people and not for others.