Universal Life or Whole Life Two Types of Permanent Plans
When deciding which life insurance policy is right for you, you have choices between the various types of life insurance policies available. Your selection will depend on several factors, but there is more than likely an option to fit your needs.
But beyond that, each policy also allows for tax-deferred growth over your lifetime
The cash value of these policies can be a vital source of supplemental cash for a variety of needs. Careful consideration should be given before using withdrawals. They will reduce the cash value or death benefit of your policy; there are no restrictions on how to use proceeds. But, before you start thinking about these products are the same, you will find some important differences between them. Any comparisons between Universal and Whole Life policies should include discussions about premium and benefits.
Premiums of both life Insurance policies differ
The premiums for each policy vary in that Whole Life offers a premium amount that will not change throughout your lifetime. A Universal Life insurance premium provides more flexibility after you pay the initial minimum amount. Universal Life premiums can adjust to fit various financial situations, but the policy does not have the same premium guarantees found in a Whole Life policy.
A Universal Life insurance policy offers a death benefit that may increase or decrease depending on your needs. The death benefit of a Whole Life insurance policy is fixed and guaranteed as long as you pay your premiums. Both policies will provide a death benefit to your beneficiaries.
Whether you are looking for the flexibility of a Universal policy or the guarantees that Whole Life insurance offers, you have options to suit your needs. Talk to your insurance agent to find a policy with the features you want.
How to Start a Michigan Policy:
Finally, for information on burial expense policies, click the link to see how much coverage is necessary to provide for your loved one’s funeral expenses.