There are two basic types of life insurance: permanent and term. Permanent life insurance is a type of policy that does not have a specific period of coverage. It is meant to offer a payout for the entirety of your life as long as your account is in good standing. As a result, it typically has higher premiums than term. Universal life insurance is a category of permanent life insurance.
Universal Life Insurance: What You Need to Know
Death benefit amounts can be flexible within this policy, unlike other life insurance products. Your monthly amount due will increase or decrease, depending on the adjustment you make to the death benefit.
There is also a component known as cash value that allows you to withdraw money paid into your account. This is a loan that must be paid back, and if unpaid at the time of your death, it will be subtracted from the death benefit.
Another feature of universal life is that premiums can sometimes be adjusted, too, if there is sufficient cash value in your policy. You may be able to defer payments or lower them if needed. Life insurance is not a legal requirement for Woodbury, MN residents, but many choose to invest in this instrument as part of their financial portfolio. You can ask your Kriener Insurance representative for specifics on the coverage included.
Death benefits are not the same as cash value, and you may be able to recover your cash value in the event that you cancel your policy. In addition, the cash value will tend to accumulate on a tax-deferred basis.
Kriener Insurance is Here to Help
Residents of Woodbury, MN can depend on us to put together insurance packages to suit their needs. Call us, reach out online, or stop by our office to find out more information today.