| v |
TheLifeInsuranceGroup.com- Independent General Insurance Agency,
Licenced in the state of Maryland only.
PO BOX 26537 | Baltimore, MD 21207
Licenced in the state of Maryland only.
PO BOX 26537 | Baltimore, MD 21207
| We are licensed Maryland Life and Health Insurance Agents Proudly serving Proudly serving Baltimore Maryland and surrounding counties. Allegany County, Charles County, Prince George's County, Anne Arundel County, Dorchester County, Queen Anne's County, Baltimore City, Frederick County, St. Mary's County, Baltimore County, Garrett County, Somerset County, Calvert County, Harford County, Talbot County, Caroline County, Howard County, Washington County, Carroll County, Kent County, Wicomico County, Cecil County, Montgomery County, Worcester County |
Universal life insurance is a more permanent type of insurance offering for people looking for long
term insurance coverage. Universal Life, also called UL, offers a great deal of flexibility over term
insurance.
Many of today’s universal life policies also offer guaranteed lifetime protection to help you protect
your loved ones against financial hardship if you die. As long as your premiums are paid, your
policy will remain in force no matter how long you live. Some life insurance policies without this
feature only pay a death benefit until a certain age, like age 100.
How Universal Life Insurance is Flexible
Universal life insurance policies have become so popular over the last years because of its
flexibility. For instance, after you make your initial payment, you are able to increase or reduce
your death benefit amount. As long as you do not miss any payments, you can pay premiums in
any amount and at any time.
Example: You would be able to increase your life insurance coverage later in life. Life insurance
benefits can increase without increasing the premium, by having more of the premium going for
insurance, and less going toward a separate cash account (which will be discussed later).
term insurance coverage. Universal Life, also called UL, offers a great deal of flexibility over term
insurance.
Many of today’s universal life policies also offer guaranteed lifetime protection to help you protect
your loved ones against financial hardship if you die. As long as your premiums are paid, your
policy will remain in force no matter how long you live. Some life insurance policies without this
feature only pay a death benefit until a certain age, like age 100.
How Universal Life Insurance is Flexible
Universal life insurance policies have become so popular over the last years because of its
flexibility. For instance, after you make your initial payment, you are able to increase or reduce
your death benefit amount. As long as you do not miss any payments, you can pay premiums in
any amount and at any time.
Example: You would be able to increase your life insurance coverage later in life. Life insurance
benefits can increase without increasing the premium, by having more of the premium going for
insurance, and less going toward a separate cash account (which will be discussed later).
| Universal Life Insurance |
The Life Insurance Group
Financial Services & Insurance. Protecting Your Financial Future.
Call for an Appointment. Local in Baltimore, MD 410.456.5356
Financial Services & Insurance. Protecting Your Financial Future.
Call for an Appointment. Local in Baltimore, MD 410.456.5356
However if you significantly increase the amount of your death benefit, your insurer for universal life insurance may require a
medical exam to determine if your health has gotten appreciably worse. Of course, the reverse can be true. After your no
longer need a large life insurance benefit, you can have less life insurance and more of the premium can go toward the
separate account.
In addition, if you are unable to pay the premiums on your policy, you may be able to lower your premiums so that you are just
paying for the insurance and not having any money going into the separate account. In addition, you may also be able to have
the money that has accrued in the separate account pay the premiums on the life insurance until you are able to pay the
premiums yourself.
This flexibility can be important to insure that you keep your life insurance active and in force. A universal life insurance policy
can help to protect against losing life insurance coverage.
Using the Cash Account
It is possible to draw out the funds that have accrued in the separate cash account to use for higher education expenses,
during times of financial instability, or for any other reason. The one drawback, however, is that most insurance companies do
charge a fee for taking this money. In addition, if parts of your premium are from the separate account, then taking too much
money can cause the premiums you pay into the policy to go up. If you are unable to pay the increased premiums of your
universal life policy, then you risk having the policy canceled. In addition, any money that you take from a universal life policy
will have to be paid back. Otherwise, you will lower the overall death benefit of the policy.
If you need to access your cash value, you have a couple of options. You can “borrow” your own cash value by taking a policy
loans. These loans are generally not taxed as long as your policy stays in force. You can even withdraw money from this cash
value without taxes as long as the total amount of money you withdraw is not greater than the total premiums you have paid.
Be aware that any loans and withdrawals may generate an income tax liability, reduce available cash value, reduce the death
benefit or cause the policy to lapse.
Conclusion
Universal Life Offers:
For some people, they buy a universal life policy to build-up cash value, then to take it, as they get older. These people do notmind having the death benefit decreased substantially because they were using the policy almost like a savings account with
the added feature of life insurance. Others, however, use it to build up a death benefit plus extra cash value to go to their
loved ones with the die.
For whatever reason you may purchase a universal life insurance policy, there is flexibility. The key, however, is to talk with a
licensed life insurance professional to make sure that a universal life insurance policy and its options are what is needed for
your own situation.
medical exam to determine if your health has gotten appreciably worse. Of course, the reverse can be true. After your no
longer need a large life insurance benefit, you can have less life insurance and more of the premium can go toward the
separate account.
In addition, if you are unable to pay the premiums on your policy, you may be able to lower your premiums so that you are just
paying for the insurance and not having any money going into the separate account. In addition, you may also be able to have
the money that has accrued in the separate account pay the premiums on the life insurance until you are able to pay the
premiums yourself.
This flexibility can be important to insure that you keep your life insurance active and in force. A universal life insurance policy
can help to protect against losing life insurance coverage.
Using the Cash Account
It is possible to draw out the funds that have accrued in the separate cash account to use for higher education expenses,
during times of financial instability, or for any other reason. The one drawback, however, is that most insurance companies do
charge a fee for taking this money. In addition, if parts of your premium are from the separate account, then taking too much
money can cause the premiums you pay into the policy to go up. If you are unable to pay the increased premiums of your
universal life policy, then you risk having the policy canceled. In addition, any money that you take from a universal life policy
will have to be paid back. Otherwise, you will lower the overall death benefit of the policy.
If you need to access your cash value, you have a couple of options. You can “borrow” your own cash value by taking a policy
loans. These loans are generally not taxed as long as your policy stays in force. You can even withdraw money from this cash
value without taxes as long as the total amount of money you withdraw is not greater than the total premiums you have paid.
Be aware that any loans and withdrawals may generate an income tax liability, reduce available cash value, reduce the death
benefit or cause the policy to lapse.
Conclusion
Universal Life Offers:
 | Flexible premium payments | |
| Guaranteed death benefit protection on some policies | |
| Potential “savings” feature from which loans and/or withdrawals can be taken | |
| Tax-advantaged cash value accumulation potential | |
| Income tax-free death benefit |
For some people, they buy a universal life policy to build-up cash value, then to take it, as they get older. These people do not
the added feature of life insurance. Others, however, use it to build up a death benefit plus extra cash value to go to their
loved ones with the die.
For whatever reason you may purchase a universal life insurance policy, there is flexibility. The key, however, is to talk with a
licensed life insurance professional to make sure that a universal life insurance policy and its options are what is needed for
your own situation.
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
 | |  | |  | |  | |  |
 | |  | |  |