What is Universal Life Insurance?

Universal life insurance in Nevada is a life policy that can last as long as you want it. That’s the easy way to put it. Universal life insurance is another form of whole life insurance, or permanent life insurance. Let’s first take a look at the similarities between regular whole life insurance and universal life.

 

Similarities of Universal Life vs Whole Life

Both policies have a cash value to them. The cash value builds and builds as the policy holder pays the premiums. The insurance company will also put interest earned in to the cash value of the policy. This cash value can be used for a variety of things. The policy holder can use the cash value to take out tax free loans against the policy and pay the balance off by paying extra on to the premiums. This is about where the similarities stop.

 

Differences of Universal Life in Nevada vs Whole Life

Universal life insurance in Nevada give the policy holder the ability to pay as they would like. The policy holder has the ability to pay a minimum premium or they have the ability to over fund the policy (up to a certain level). As long as the policy holder properly funds the policy or stays under the Modified Endowment contract limit the policy will remain active.

The policy holder also has two options with their death benefit when they purchase the policy. The first option is to have a level death benefit. This will decrease the premium that the policy holder has to pay. By doing this, the death benefit will remain at what the policy holder originally wanted it at. The second option would be the increasing death benefit. As the policy holder pays into the policy, the death benefit starts to increase along with the cash value of the policy.

 

Where can I buy Universal Life?

Give our office a call and talk with one of our local insurance brokers about Universal Life today.