Who Benefits from Universal Life Insurance?

Are you thinking about getting universal life insurance? You are not alone. Many people find this kind of life insurance to be especially advantageous for their needs. By buying a universal life insurance policy, you’re investing in the care and safety of your loved ones and other beneficiaries to your policy after you die. The money you spend doesn’t just go towards paying your premium, it builds up in value and earns interest. It can also be invested in various financial funds, like the stock market.

In a way, all participants in the process benefit from your universal life insurance policy. You, the policy holder, benefit by seeing the money you put into your universal life insurance policy grow as it earns interest. You also benefit from it by being able to access it if yo need to. And of course, you benefit from it by having peace of mind that your loved ones and beneficiaries will have money left to them when you die.

Of course, beneficiaries are probably those who benefit the most from your universal life insurance policy. When you die, those named on your policy will receive all the money involved, disbursed according to your wishes as spelled out in your policy. Upon your death, they will receive the cash total value of the benefits in your account, and can then live and plan their lives with that much more security.

Insurance agents and brokers who sell universal life insurance policies also benefit. That’s because the commissions they receive are very large, and can sometimes be 100% of a year’s premiums. This windfall-like commission is actually reason for prospective life insurance buyers to take heed – since their commission is so large, insurance brokers may try to sell you universal life insurance even if it’s not the best plan for your needs.

To learn more about universal life insurance and who benefits from it, be sure to speak with a financial advisor. You need to go over the policy’s pros and cons before you commit to it.