Life insurance policies play a significant role in providing comfort and support to your family during the death of you or your spouse. It is a solution for getting necessary financial help for meeting funeral expenses, replacing income to maintain the current lifestyle of your spouse or children, etc. On the other hand, universal life insurance is beneficial for building an emergency fund, establishing a business succession plan, paying potential tax liabilities on capital gains and registered assets, creating and preserving an estate for your heirs, etc. In Universal Life Insurance for retirement income, a portion of premium payment is allocated for maintaining your death benefits and the other portion goes for investment.

Universal Life Insurance Benefits

Universal Life Insurance is coming with lots of advantages. This is highly useful for covering final expenses such as unpaid medical bills, burial and funeral expenses, income replacement, estate liquidity, debt coverage, key person insurance, business succession and continuity, estate replacement, mortgage acceleration, non-qualified deferred compensation, split dollar plans, controlled executive bonus, executive bonus, charitable gifts, annuity alternative, whole life insurance alternative, term life insurance alternative, Roth IRA alternative or Life insurance retirement plan, estate equalization, cryonics funding, predator/creditor protection, RMD maximization, annuity maximization, Pension maximization, etc.

Estate Preservation

Universal Life Insurance is helpful for protecting and enhancing your assets. So, this is a highly effective tool for estate preservation. If you take this policy, you can provide funds to your heirs to the costs of estate settlement. Thus, you are helping them avoiding the depleting value of assets, which you pass on to them. Otherwise, your might have to take on debt, sell investments, or use savings for meeting administrative costs, funeral expenses, and estate taxes.

Access to Cash Value
This life insurance is also beneficial for meeting some important expenses like mortgage debt, emergency medical expenses, educational costs, retirement supplement, etc. You also need income due to job change or interruption.

Tax Advantaged Investing

Universal life insurance is ideal for protecting the financial future of your family. At the same time, it also provides you opportunities to invest and earn money. This method is called tax advantaged investing. This is highly helpful for meeting your long term financial goals. Once you deposit your insurance payment, the insurance company will use a portion of that money for insurance and cover administrative costs. You can also select an investment plan as per your interest and need. It can be on the basis of your circumstances, financial goals and investment risk. Therefore, you can use your investment plan for increasing your death benefit, continuing to grow you cash value or paying a part of or all the cost of your insurance.

If you are planning to maximize your contribution to tax free saving account or Registered Retirement Savings Plan, Universal life is an ideal solution. You can also go for this insurance plan if you like a tax efficient way for protecting your assets and enhancing the value of your estate. This is also helpful for providing wealth transfer benefits. You will get a well rounded financial plan if you combine Universal Life Insurance with your investing strategy. So, this is a great option for attaining your long term financial objectives.