Sun. Nov 27th, 2022
Life Insurance Guide to Policies and Companies

Life Insurance Guide to Policies and Companies


If you have dependents, life insurance should be part of your overall financial plan. It provides financial support to your family if you pass away and gives you peace of mind that your loved ones will be cared for.

But what about when you’re still alive? Universal life insurance is often sold as a combination of life insurance and an investment product. Similar to whole life insurance, universal life insurance lasts for your entire life (as long as you pay your premiums) and provides a standard death benefit coverage as well as a cash value that grows over time.

While it may sound tempting to have a life insurance policy you can tap into for cash while you’re still alive, it comes at a hefty cost — universal life insurance is much more expensive than term life insurance, which provides the same death benefit minus the savings vehicle. Here’s why experts say universal life insurance is rarely worth it, and what they recommend instead.

What Is Universal Life Insurance?

Universal life insurance is a type of permanent life insurance policy that combines a death benefit with a savings vehicle. With this type of policy, you’re guaranteed coverage for your entire life as long as you pay your monthly premiums.

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