Customer Friendly Universal Life Insurance
Universal life insurance is a specialized policy that, often times, is offered by an employer to a prospective or current employee as part of an overall benefits package. The employer normally takes the payments for premiums out of the workers’ paychecks every pay period to help financially support this important coverage. Good universal policies are a terrific idea for anyone to obtain due to the fact that they offer so much more than just the usual benefit of a lump sum payout after one passes away.
How it Functions
A typical universal life policy operates much like a traditional life insurance policy in that it compensates beneficiaries if the policyholder dies. The payout goes to whomever the policyholder indicates as the beneficiary. The unusual aspect of a good universal life insurance policy is that it has a cash value that the insured party can often utilize in the case of an emergency. A policyholder might be able to borrow against his or her plan. However, this is only possible if the policy has accumulated a relatively significant amount of value. In addition, universal policies’ are invested in various funds, meaning the growth potential of the investment can increase the policy value, potentially quickly. Many like to purchase a universal plan because of these special aspects. And, the universal policy can cost less than a whole life plan. With reasonable premiums being sourced out of an employee’s paycheck, the worker may not even notice the lower income.
The level of the value of these policies varies due to the needs and wants of the insured. Policies can be valued for as little as $25,000 and go up, in premium cost as well, to as much as multiple hundreds of thousands of dollars, perhaps millions. The individual who purchases this policy will remain covered for as long as he makes his premium payments. In contrast, a term life policy only lasts a certain number of months.
Those seeking coverage generally don’t need to take health tests if they obtain their policies through their companies’ leadership. That gives employees the opportunity to acquire the protection that they need for their loved one, without the added stress. Interested parties can ask about this coverage with their employers. Often employers make the coverage available to the worker within 90 days of job commencement.