FAQ: Is There a Term Limit for Universal Life Insurance?

Universal life insurance is a type of life insurance policy that you put your money into that builds up a cash value that you can withdraw should you need to, as long as there is money left in the account to pay for your universal life insurance needs. Universal life insurance is a kind of permanent life insurance, as opposed to term insurance. Term insurance has time limits – one year, two years, five years, etc. – that you can pick and choose depending on your needs. With universal life insurance, you are committing to an open-ended life insurance policy that will last for the rest of your life. The money you accrue in your universal life insurance plan is sensitive to market rates.

Life Insurance Necessary

It may not be the most exciting thing in the world, but nevertheless, you have to have insurance. The risk you take by going without certain types of coverage are just too great. If, for example, you get into a car accident while not covered, you could easily be in for high bills that could cause bankruptcy. The same goes for health insurance, only more so. If you are uninsured and are involved a bad accident, you’re going to have to pay out of your own pocket for a night in a hospital room that can cost thousands of dollars. The bottom line is, if you experience an emergency and don’t have insurance, life could become even more complicated for you. In that spirit, you want to have life insurance for the people you love, especially if they include a spouse or partner and children.

To learn more about universal life insurance rates, term insurance, permanent insurance, and other kinds of life insurance, be sure to consult with a life insurance specialist. He or she can advise you as to whether universal life insurance is the right kind of policy for your needs.