Universal Life Insurance
Universal life insurance is relatively new, as it was introduced in the 1980s. This type of policy has a guaranteed minimum interest rate. However, the interest rates change every year. A universal life policy also has a flexible premium.
Available as a Benefit
Check with your job to see if universal life is a benefit. Some employers offer this policy as a workplace benefit. The policy will cost less if you buy insurance through your employer. Before you buy insurance, confirm that the insurance company is reputable.
How it Works
Universal life insurance also works as an investment. The rates of return are based on market conditions and interest rates. You make payments to the company, and in turn, the insurance company invests the money and pays you interest. The insured gets a death benefit plus the value of the account. That means if you have a $100,000 policy with an account value of $50,000, then your beneficiary will receive $150,000.
Universal life insurance is one of several types of life insurance. Research online or speak with an insurance agent to decide which policy is best for you.