If you want to prepare for your family’s future, it would be wise to get a permanent life insurance policy that can help cover expenses in case you pass away. Fortunately, you call the whole life insurance policies and the universal ones.
While these types of life insurance policies can be interchangeable, there are distinct differences between the two that can help you decide which one is the right. Below are a few of the main differences you would need to watch out for if you apply for either whole life or universal life insurance.
- Flexibility
First, both whole and universal life insurance policies might offer permanent coverage. However, the latter offers much more flexibility regarding payouts and payments. It has a more flexible plan available to help you deal with financial responsibilities. - Incremental Dividends versus Possible Loans
Secondly, whole insurance policies may be paid in dividends at any time. Universal life insurance can be released upon the policyholder’s borrowing discretion. If you want a more regular payout, it will help you to get whole life insurance. - Fixed Payment
Whole life insurance payouts might be fixed. One advantage of working with whole life insurance policies would be that you might have the option to pay for a specific monthly amount that does not increase over time. You would have to be clear about this with your insurance company right from the get-go.
With these various points and advantages, it would be up to you to decide which one to choose between the two. It depends on what you need from the policy itself. - Various Possible Payment Options
You will also have the option to pay for a lump sum amount or a staggered payment plan of monthly increments. This works with both whole and universal Life Insurance policies. - It Can Cater To Your Specific Needs
You would also have to consider your own needs as a policyholder. Do you have a family, or are you single, and do you want to have a more secure future once you retire? You will determine which policy would be right for you, depending on your answer.
Conclusion
Whatever you decide, it is important to research each policy well before you choose one. This way, you can update your existing policies with ease.
At Lapeira & Associates LLC, 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 (855) 963-6900 or Click Here to request a free quote. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.
