Universal Life works very well for people who have a permanent insurance need and want the flexibility and control to change premium levels, investment options and coverage levels.
Important things to consider when buying Universal Life Insurance:
The guarantees. Be sure you understand what is guaranteed and what is not. Typically, most of the insurance charges are guaranteed in some form, while the investment side of the product has very limited guarantees.
The charges. Look at the full package of charges – not just one of the types of charges. Ask for a total of charges listed year by year, including the surrender charges in case you choose to give up your coverage.
Your tolerance with risk. Because universal life has a flexible investment component, it’s more important than ever to be aware of the investment risk associated with the various investment options and that they match your risk tolerance. It’s crucial that your representative also understands your tolerance with risk and how you wish to use this investment component. Do you want to take risks with your life insurance policy or should riskier investment vehicles be held separately.
Product illustrations. Insurance representatives often use illustrations to show how the product works. They are not intended to be an estimate of future values or for comparing plans between companies.
Speak with a Qualified Professional today to help choose the right Universal Life Insurance plan for you.
Not thinking of Term Life Insurance?