Universal Life Insurance Policies
A permanent life insurance policy is known as universal insurance. This type of policy is not contingent upon a job or other time period. Term insurance, such as that you get from your employer, is much less expensive. A universal or whole life policy accrues a cash value, which can build up over the years. You can borrow against the value if money is needed and this is a benefit over term life insurance.
When you leave your job or your employment is severed, then your term life insurance can end. This means that if you have to quit working due to an illness, you can lose your life insurance, meaning no payout for your family if you pass away.
Another benefit of universal life insurance is that the value can reach the point where it can pay its own premiums from the accrued interest. As long as premiums are paid, whether via the interest or by you, the insurance will be in effect. The cash value will be paid out to your beneficiaries upon your death to allow them to take care of the family.
Universal life insurance can be more expensive, but it can make a big difference to your family.
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