Universal life insurance is a permanent affordable policy

Universal life insurance is a permanent, affordable policy that can help keep your premiums low over time and allows you to build tax-sheltered cash inside the policy.  

The problem is that families have term life insurance in the early years. But the premiums with all term insurance increase over time. Then as you get older term life insurance premiums just gets too expensive to continue.  

By owning a small amount of universal life insurance combined with a term life insurance policy you can still get the coverage you need but in the later years as less life insurance might be needed, the term life insurance can be cancelled, keeping the universal life insurance. Your premiums go down because you are only paying the universal life insurance premium. You now have coverage to age 100 and it is affordable.  

If you are between age 30 and 50 consider policies with some universal life insurance topped up with term life insurance.

Universal life Insurance with Term insurance on top:  

A male non-smoker age 35, 100,000 of universal life with 400,000 dollars of term life insurance would cost 104.06 per month 

A female non-smoker age 35, 100,000 of universal life with 400,000 dollars of term life insurance would cost 88.82 per month 

(these rates are correct on April 9, 2020) 

UNDERSTANDING UNIVERSAL LIFE POLICIES 

Universal life insurance is really a simple math formula. The minimum monthly premium you deposit must at least equal the cost of the insurance. You can increase your monthly premiums above the minimum, the extra money you deposit will be added to cash value and can be added to the death benefit. With each universal life insurance policy there is a maximum deposit. This maximum deposit allows our cash to grow tax free. If you deposit beyond the maximum the growth will be taxable.

There are many configurations and ways to put a universal life insurance policy together. The best thing to do is to talk with an experienced agent, look at lots of examples so you can understand the plans and which plan is right for your family.  

Ask your advisor about the payment options available to you and decide which one best suits your long-term goals.