Klamath Insurance Center, Inc Blog
Universal life insurance and whole life insurance both belong in the category of permanent life insurance. These policies give the insured lifetime coverage. But, you will get cash surrender value upon the cancellation of your permanent life insurance, for example, you decide to stop your contract during an emergency.
You may also apply for a loan on your policy by borrowing from your cash value. This is why many people also refer to permanent life as cash-value insurance.
Now, learn the difference between universal life and whole life insurance:
Universal Life Insurance
Compared to whole life insurance, this kind of policy provides more flexibility. This is because your insurer will allow you to increase or decrease your death benefit. Also, after you pay your first premium, you are able to pay your other premiums in any amount at your chosen date, but with certain limitations.
Universal life policy allows you to increase your death benefit, also known as face value. However, you must qualify for it by passing a medical examination. On the other hand, it is also possible to reduce your coverage amount without the need to cancel your policy. But remember that these surrender charges can affect your cash value.
Universal life policy is flexible, secure, and comes with many different investment options. Depending on your situation, you can tweak the face value of your coverage. Overall, it is broad and stable protection to your family.
Whole Life Insurance
This type of permanent life insurance can protect you for the rest of your life. To be able to get your death benefit, you should pay your premium in the same amount for a certain period. No matter what age you reach in your lifetime, whole life stays intact.
So, if you have responsibilities for the long-term such as post-death expenses or income needs of a surviving spouse, this policy is ideal for you.
Make sure that you continue your whole life coverage as long as you are alive so it can help you fulfill your long-term goals. The younger you are, the better it is to purchase a whole life policy.
Talk to an insurance agent to know what kind of life insurance will work best for your situation.
At Klamath Insurance Center, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (541) 882-5555 or Click Here to request a free quote.