Universal Life Insurance Policy New Jersey NJ
Reader’s Question:
What does universal life insurance policy offers?
Paul
Elizabeth, NJ
Guaranteed level death benefit is one of the advantages with universal life insurance offers. The guaranteed level death benefit can be decreased or increased by the policy owner. To decrease the death benefit is easy but if the policy holder would like to increase the death benefit, he/she has to show the proof of insurability and obtain approval from the life insurance company.
With universal life insurance policy, there is also a savings element that can either be increased or decreased at the will of the policyholder. The request to decrease the life insurance is not as difficult as to increase where evidence of insurability is required from policyholder. Aside from this advantage, the death benefits are paid to the beneficiaries upon the death of the policy holder. When this is paid upon the death of the policy owner, the face amount is usually free from income tax. This life insurance policy also accumulates cash that is tax deferred. The cash can be accessed by the policy owner in the event of emergency. Furthermore, the face amount increases according to the cash value earnings of the life insurance policy.
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