Universal Life Insurance


A Universal Life Insurance policy protects the insured with a guaranteed death benefit. Additionally, this type of policy includes a cash value savings component. Over time, the cash value of the policy will increase on a tax deferred basis.



Death Benefit

With a universal life insurance policy, you have two options: level or increasing.

With the level death benefit, the amount the policy pays out stays level throughout the life of the policy, and the policy will pay out either the death benefit or the cash value, whichever is greater. With an increasing death benefit, both the cash value and the death benefit increase over time, and both are paid out as part of the death benefit.

Gaurantee Interest Rate

With universal life, the insurance company sets a minimum interest rate based on the contract for the policy (usually a low 2-3%). If the insurance company’s overall portfolio gains in value, then part of the increase is added to the cash value of the company’s universal life policies, up to the maximum percentage amount listed in the policy contracts. If the company’s portfolio does not have a gain, or if it takes a loss, the insurance company is still obligated to pay the minimum interest stated in the policy contracts.

Universal life insurance provides an additional level of security with a guaranteed interest rate. The interest rate is guaranteed to never fall below a specified level on the growth of funds in the policy’s cash value component.

Tax Deferment

The cash value account is tax deferred and permits loans against the cash value. The interest is adjusted monthly, allowing the cash value to grow faster.


Universal life insurance offers you the flexibility to increase or decrease the death benefits as needed, based on your situation. You may skip premium payments if there are enough funds built up to cover the cost of insurance.



Universal life insurance gives you many options to customize your coverage. Depending on the type of policy, you may be able to choose where your cash accumulation goes. Many people use this type of policy to supplement their retirement income needs by taking loans against the policy after retirement.

Let the qualified insurance experts at Option Insurance Group help you! If you are interested in learning more, schedule a free consultation with today! Or give us a call at 888-755-3778.



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