Universal life insurance has many positive features over other insurance policies and plans, such as the freedom and flexibility to move your money around and use it as you wish while you are still alive. It is best to invest during your younger years; however, it can be beneficial at any time in your life.
Understanding Universal Life Insurance
Life is uncertain and universal life insurance (UL) can provide lifelong security and flexibility to policyholders. It is both a life insurance plan that incorporates some elements directly related to investment savings and other elements that more closely resemble that of a term life insurance policy. Under a UL policy, you have greater flexibility than other types, such as to select the ways you would like to use your premiums toward investments and savings and to use payouts toward future premium payments. The differences and advantages are unique. However, UL is most commonly compared to whole life insurance due to the many similarities.
Universal Life Insurance FAQs
An Ideal Time to Invest
It is important to note that a UL plan is ideal to invest in during your 20s and 30s to ensure you have time to build your assets. You want to have the plan for up to 15 years prior to making any financial adjustments to the account. It is also more beneficial to start at a younger age when rates are lower. Another consideration is that a UL policy is most advantageous during a stable market and economy. An unstable market adds considerable risk to these policies.