Reader’s Question:

What are the advantages and disadvantages of buying universal life insurance? Im planning to buy a universal life insurance online.

Rey

Thank you for asking Rey.

If you’re considering buying a universal life insurance online, you may be a bit surprised to know that there are many advantages to universal life insurance policies. The following advantages are as follows:

1. Your universal life insurance policy offers permanent protection, compared to a term life insurance policy.
2. Your universal life insurance policy provides accounts for cash value that are low risk. In addition to that, the cash accumulation is tax-deferred. Plus, your policy’s cash value account can also earn interest with market rates.
3. you have the options of withdrawing or simply borrowing from your universal life insurance policy which is very convenient and is similar to a whole life insurance policy.
4. Your universal life insurance policy provides both face amount and premium flexibilities.

Even though your universal life insurance policy will provide flexibility, it will not offer the account flexibility needed to move your money around or invest in different accounts. There is no guarantee that your universal life insurance policy will earn cash value, nor is there guarantee that your universal life insurance policy will be in effect when you need it if sufficient premiums have not been paid.

Goodluck!

MariCAR