Universal Life insurance
Protect Your Assets and grow your nest egg with Kelmar Financial Insurance
Kelmar Financial offers a Universal Life Insurance policy designed to meet individual needs with flexibility and affordability. Here's an overview of how our Universal Life Insurance works:
- Lifelong Protection: Once a person is insured under the Universal Life Insurance policy, they are covered for the rest of their life, provided they continue to make premium payments and fulfill all other policy requirements.
- Premium Payments: Policyholders need to pay premiums on an ongoing basis to keep the policy active. These payments contribute to both the life insurance coverage and the savings component of the policy.
- Flexibility: One of the key features of Universal Life Insurance is its flexibility. Policyholders can adjust the premium payment amounts within certain limits, allowing them to adapt their coverage to changing financial circumstances.
- Cash Value: Similar to other permanent life insurance policies, Universal Life Insurance has a savings component known as the "cash value." A portion of each premium payment is allocated to this cash value, which accumulates over time. The cash value grows on a tax-deferred basis, meaning that policyholders won't be taxed on the growth until they withdraw or borrow from it.
- Investment Options: Depending on the insurance company and policy, policyholders might have the opportunity to invest the cash value in various investment options. The returns on these investments can potentially enhance the cash value growth, but they also come with associated risks.
- Withdrawals and Loans: Policyholders can access the cash value through withdrawals or loans. Withdrawals reduce the cash value and the death benefit of the policy. Loans are borrowed against the cash value and need to be paid back with interest. Unpaid loans can reduce the death benefit.
- Death Benefit: The Universal Life Insurance policy provides a death benefit to the beneficiary upon the insured person's passing. The death benefit is typically the sum of the original coverage amount and the accumulated cash value, minus any outstanding loans or withdrawals.
- Estate Planning and Legacy: Universal Life Insurance can be used as part of estate planning to leave a financial legacy for beneficiaries. The death benefit can be a source of financial support for loved ones or can be structured to support charitable causes.