What is universal life insurance?
Universal life is permanent insurance, which has the potential to accumulate cash value. However, it offers additional features and options as well. For example, we can increase or decrease our policy's face amount to accommodate your changing protection needs. You can also increase or decrease the dollar amount of our premium payments and make additional lump sum payments to your policy.
Why would we want it?
Becausewe want to ensure that our family will have the money necessary to live in comfort, purchase a home, pay for college, and so on, should something happen to us. At the same time, we want flexibility and control.
We want a policy that's permanent and accrues cash value, which we can borrow against for any purpose. We want the option to skip premium payments, which we can do if our account has accrued sufficient value. We want the potential to earn a higher rate of return than a whole life policy, even though there's a risk that our rate of return could drop
Variable life insurance
Variable life is permanent insurance, which allows you to invest a portion of your premium in various subaccounts. The policy owner can choose among several subaccounts, each of which has its own investment strategy, and invests the money in stocks, bonds, money market, or other securities in order to build your policy's cash value. However, because the performance of these investments is not guaranteed, there is an element of risk.
Why would we want it?
Because we want to ensure that our family will have the money necessary to live in comfort, purchase a home, pay for college, and so on, should something happen to us. At the same time, we want flexibility and control.
We want a policy that's permanent and accrues cash value, which we can borrow against for any purpose.We want to be able to borrow or withdraw funds from our account on a tax favored basis, which we can do in most cases - provided our policy remains in force.We want the option to add to our account value by paying an amount above our regular premium. We want the potential to earn a higher rate of return on our account investments, even though our rate of return could also drop.
