UNIVERSAL LIFE INSURANCE POLICY
Universal Life Insurance policy, in short terms, can be referred to as a type of permanent life insurance along with the benefit of flexible premiums, and cash value buildup. The coverage can last for a lifetime so long as premiums are paid. In Universal Life Insurance, the death benefit is guaranteed for the age of 85 - 121 years. There are two different scenarios of when a universal life insurance policy matures.
This is a question most of us are looking for an explanation. The policy hits the maturity date when the amount you have paid into your whole life policy matches the death benefit. The maturity date of Universal Life Policy is when one turns to a certain age, usually 85 but some recent policies extended the age to 120 years. Therefore, one should be very particular while choosing a policy with the maturity date you are comfortable with. When the policy meets the maturity date, the beneficiaries will receive the complete payment as yet and the coverage comes to an end. Nevertheless, the payment will be made depending on the policy which may be the death benefit or a marked amount but it’s usually in accordance to the policy’s cash value. This happens when a person dies.
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There can be a problem if the person lives beyond the maturity date and has utilized most of the cash value to pay for the premiums. In that scenario, heshe can end up with no coverage at all and a little amount returned back. If the person falls terminally or chronically ill, heshe shall be given the alternative to “cash in” the insurance policy after the deduction of administrative fees. This option may or may not be open for all carriers, which is why it is always important and prudent to look into the details and features before applying for the coverage.
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