How Universal Life Insurance Prevents Your Premiums From Becoming Dead Investments?

Life Insurances give you returns only after your demise, this makes it a questionable investment or plan for some of us. Here is where Universal Life Insurance offers you a productive plan for the value for your money. Under Universal Life Insurance, a part of your premium will be directed towards the cost of your life insurance, while the remaining amount shall be invested in marketable securities. The earnings received from such investments or securities shall also be added to the amount of your claimable benefit. The following features of a Universal Life Insurance allow it to be a reliable saving as well as an insurance policy.

Collateral Feature

This feature makes Universal Life Insurance an attractive life insurance policy which offers benefits even during your lifetime. Universal Life Insurance allows you to borrow funds against the cash value of your policy, which is the value invested in certain securities. This amount can be utilized for any purpose, and in case of your death during the period of your loan, the benefit claimable by your family shall be reduced by such amount as may be borrowed.

Withdrawal of Benefit

In case of any change in opinion, Universal Life Insurance always allows you to withdraw your cash value or your investment value. Here, your life insurance shall be continued as usual and only your investment plan shall be terminated. This option allows you to test the benefits of the policy and continue according to your needs and requirements.

Choice of Investment

This is the most beneficial feature of the policy. It allows you to choose your preferred investment giving you options ranging from Guaranteed Investment Certificate to index funds. This allows you to change your policy in accordance with your risk appetite and investment choices.

Flexibility of Options

It is not necessary to have a fixed ratio of premium to be directed towards your life insurance and cash investment. You can specify a percentage accordingly of how much you want your premium to have flowed towards your investment, based on which your fixed benefit and investment-oriented benefit may change. You can also choose options where you will be receiving periodical earnings from your investments and securities.