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Universal Life Insurance

Universal life insurance is a policy that an employer may offer to someone who works for them as a part of a benefits package. The employer would take the premium payments out of the employee’s paychecks every period to cover the costs. Universal policies are a good idea for any person to have because they provide more than just the standard benefit of the payout upon death.

The universal life policy works like a standard life insurance policy as it pays out if the person dies. The payments would go to whomever the person chooses as the beneficiary to collect such monies. The interesting part of a universal policy is that it carries a cash value that the insured may be able to use if an emergency arises. He may be able to borrow against the plan if it has accumulated a good-sized amount. Furthermore, universal policies invest themselves in various funds, and that investment can grow the person’s policy amount. Many people like to buy a universal policy because of those aspects. The universal policy is always a bit less costly than the whole life policy. With payments coming out of an employee’s paycheck, he may not even notice the premium leaving his presence.

The amount of the policy varies according to what the insured person wants. Policies can be as small as about $25,000, and they can go to as much as several hundreds of thousands of dollars or even millions. The premiums rise with the coverage amounts, of course. The person who buys the policy stays covered as long as he continues to make the payments. That’s different from a term policy that only lasts a certain amount of time.

People generally do not have to take tests that verify their health if they get their policies through their employers. That gives workers a chance to have the coverage that they need for their families without any hassle. Interested persons can inquire with their employers about this insurance type. Generally, the employer will make it accessible to the employee within 90 days of the start of a job.