Life insurance is a necessary tool to help you plan for the financial future of loved ones after you pass away. Numerous life insurance policies are available, making it a challenge to know the best choice for your financial protection. A universal life insurance policy is just one of the different options available. Contact McKinney Insurance Services today to learn more about this type of policy and if it’s the right fit for you. 

What Is Universal Life Insurance? 

Universal life insurance is a type of permanent life insurance that combines elements of a term life insurance policy with an ability to earn interest on your policy’s cash value, paying a market rate of return. Often, universal life insurance is more flexible, allowing you to change your premium payments and death benefit within policy limits. 

With a universal life policy, your premium payments are allocated to both the death benefit and your policy’s cash value. The cash value can grow tax-deferred and be withdrawn or borrowed from your policy. Every policy is different, and rules surrounding withdrawing or borrowing funds from your policy will vary. Be sure to talk to your McKinney Insurance Services agent for more information. 

How Does Universal Coverage Work? 

Universal life insurance is permanent life insurance. A universal life policy covers the insured person for the duration of their life as long as they pay their premiums and fulfill any other policy requirements. Universal life insurance combines a savings component (e.g., cash value) with lifelong protection. Your policy’s death benefit is paid out to your beneficiaries when you die. 

Universal life insurance policies typically have the following features: 

• Use your policy’s cash value to withdraw or borrow money.
• Earn interest with your policy’s cash value.
• Lower or stop paying your premium for a period of time.
• Increase or decrease your death benefit.

A universal life insurance policy allows you to adjust your premiums and death benefit over time to suit your needs. In contrast, with whole life, your premiums and death benefit are fixed for the duration of the policy. We can help you determine whether this is the life insurance choice for you. 

Start Your Coverage 

McKinney Insurance Services has served our clients in western North Carolina for over 30 years. Call us at 800-684-5020 to get started on a life insurance policy that meets your coverage needs.