Universal Life Insurance
Universal life insurance is a form of insurance that can provide life-long protection for you and security for your beneficiaries. In any cash value policy, there are some common features:
You can cancel or surrender a policy in whole or part and receive cash in a lump sum equal to the current cash value, which increases as you pay premiums. Please read AUL's VUL disclaimer regarding variable universal life policies.
If you need to stop paying premiums, you can use the cash value to pay premiums and continue your current insurance protection for a specified time.
You may be able to borrow from the policy, using your cash value as collateral. You must repay the loan with interest or your beneficiaries will receive a smaller death benefit.
Universal life gives you the flexibility, after payment of your first premium, to pay premiums at any time in any amount, subject to certain minimums and maximums. You can also reduce or increase the death benefit more easily than with a whole life policy.
A variable universal life (VUL) policy gives you all this flexibility, but is not guaranteed. Instead, the policyholder assumes some risk by choosing among available investment options based on his or her risk tolerance. Investment performance, which is not guaranteed and subject to market risk, ultimately determines the cash value and death benefit.
You may want to consider a universal life insurance policy if you are:
- young and want a flexible, fixed interest policy that can grow with you.
- saving for a child's college education.
- interested in accumulating cash value for retirement.
- planning for your business or estate.
- interested in flexibility of coverage while taking advantage of the opportunity to invest in a number of investment options -- as in the case of a VUL policy.
OneAmerica companies can help with universal life insurance options for you and your family.
