Universal Life Insurance

Universal life insurance is a type of whole life insurance, but differs from other whole life policies as it allows the policy owner to vary, with limits, the amount and timing of premium payments and the death benefits. These changes can be made while the policy is in effect.

Cash values are accumulated by crediting premium payments and interest to a fund from which deductions are made for expenses and cost of insurance. The rates at which the interest is credited are declared by the company or may be specific in the contract.

Like term insurance, universal life insurance policies usually have two sets of premiums - guaranteed maximum premiums and current premiums. Current premiums may be lower, but they can be changed by the insurance company up to the maximum. They also include a minimum interest guarantee. Because of its flexibility, a universal life policy can also be structured to operate like term insurance.

For help in deciding what type of insurance best meets your goals and objectives please call us at 1-800-392-3009 to make an appointment with a Financial Advisor today. Or visit us at any of our branches.

People's Financial Advisors is a division of People's Securities, Inc. Investments & Insurance are available through People's Securities, Inc. (member FINRA and SIPC), a subsidiary of People's United Bank.