Universal life insurance is a type of permanent, flexible life insurance policy that builds cash value. The cash value is interest sensitive so its growth depends on the general financial climate.
Other things to know if considering a universal life insurance policy:
- As the cash value portion of the policy fluctuates, the death benefit available at the time of your death and the premiums required to prevent lapse of your policy may also fluctuate.
- Because of this, you must closely manage your universal life policy to avoid surprises.
- After you pay your initial universal life premium, you can pay premiums any time, in almost any amount (subject to minimums and maximums). Failure to pay sufficient premium could cause a policy to lapse if there is not enough cash value in the policy to pay the cost of insurance and other policy charges.
- You can change the death benefit on a universal life policy more easily than with a traditional whole life policy.
Contact a Horace Mann insurance agent to discuss your life insurance needs.
The universal life policies offered by Horace Mann insurance representatives are underwritten by Lincoln Financial Group and Ameritas.