Copyright 2008 The Insurance Files
    There are several types of permanent life insurance to choose from. The most flexible choice is universal life insurance. Universal life is flexible for two reasons; you are allowed to change the amount of your premium at any time as well as adjust the amount of your death benefit at any time. Because universal life is a permanent policy, the coverage lasts for your entire life, unless the policy is cancelled. The flexibility of the policy is the best benefit of universal life. The policy plans ahead for you knowing that there will be times throughout your life that always arrive when you may not be able to afford the premium, or possibly that you can afford to send in more than usual. With universal life, the policyholder has the option of increasing, decreasing, or even skipping payments on premiums for a short period of time. These policies

are popular because many people prefer the flexibility as opposed to the flat rate premiums of other life insurance plans. In addition to being flexible, universal life policies also have a cash value feature. Cash builds in a separate fund from a portion of the premium. The money grows tax-free and you can use the cash to borrow against, cash out if you cancel the policy, or pay your premiums during hardship.

    The phrase "if it sounds too good to be true, it probably is" comes into play slightly with universal life insurance. There is a target premium, specified in the policy, that must be met even though adjustments are allowed. Also, if you lower your premium during a difficult time, you must have adequate funding in your cash value account to cover the amount you decrease the premium. All in all, universal life is a good policy to have, but it is not for all situations. But, if you liked what you read, get a free life insurance quote to cover yourself and provide peace of mind to your family.