What is universal life insurance?
Universal life insurance is a permanent life insurance product which comes with flexible premium options from the day you deposit your first monthly premium.
Universal life, or simply “UL”, serves a great midpoint product between term life and whole life. Instead of a coverage for a specific amount of time, or one with the same repeating payment amount, you’ll get permanent lifetime coverage with the flexible premium payment options.
No matter how your health changes over your lifetime, a universal life policy remains active for as long as your premiums are paid in full. A UL policy can help you build a lifelong legacy your loved ones can rely on.
Let’s take a deeper look at universal life insurance and explain in simple terms how this type of policy works. This way, you'll be empowered with key information to start building the foundation for your legacy.
How does universal life insurance work?
At Legal & General America, we offer what’s called guaranteed universal life insurance, which guarantees you will be protected to age 121, gives you flexibility with premium payments, and provides an option to decrease your death benefit if your needs change.
When you pass away your beneficiaries receive a tax-free cash sum, called the death benefit. This money can be used to cover anything, and often aids with paying funeral expenses, mortgages, estate tax bills, and medical bills.
What makes universal insurance special is premium flexibility and affordability.
Having adjustable premiums means that you have the option to make higher premium payments when you have extra cash on hand or lower ones when money is tight (subject to certain minimums and maximums).