One of Seward Insurance Group’s primary life insurance products in Richmond, Universal Life Insurance
is permanent insurance that provides death benefits and also has a savings or cash value component that grows on a tax deferred basis. Costs associated with administering and maintaining the policy and its benefits are deducted from premiums with the balance invested by the carrier. There is a guaranteed interest rate (usually around 2-4%).
Universal Life Insurance generally has two death benefit options to choose from:
a level death benefit equal to the policy’s face amount.
an increasing death benefit equal to the face amount plus the cash accumulation amount.
Many Universal Life Insurance policies also offer a No Lapse Guarantee
which means that as long as you pay the required premium, and there are not any loans or withdrawals made from the cash value, the policy will stay in force.
Universal Life Insurance offers flexible premium payments. After the initial payment, the policy owner can opt to pay the billed premiums, more or less than the billed premiums (subject to certain minimums and maximums), or no premiums if there is sufficient cash value to cover monthly insurance charges. Not paying premiums for a year or more will change and shorten the lifetime guaranteed death benefit.
Universal Life Insurance
allows for cash value loans subject to interest, and if unpaid, the loan amount plus the interest on it will reduce the face amount of the policy. Many Universal Life Insurance policies will continue to credit the outstanding loan amount at the current interest rate making it a more attractive loan option if needed. Many Universal Life Insurance policies will also permit cash withdrawals from the cash account, known as a partial surrender, which, are not treated as a loan nor subject to interest charges.
To discuss Universal Life Insurance or other life insurance policies, contact David at Seward Insurance Group. We are a local company based in Henrico County, and we proudly serve clients throughout Richmond and the neighboring counties, including Chesterfield, Hanover, and more.