Universal Life Insurance Information for Massachusetts Residents

Universal life insurance is a more permanent type of insurance offered for people looking for long term insurance coverage. Universal Life, also called UL, offers a great deal of flexibility compared to term insurance.

You can pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. You can also pay premiums in advance and even skip payments in certain circumstances. Plus, UL can better meet your changing needs over time because you can increase or reduce the death benefit.

Many of today's universal life policies also offer guaranteed lifetime protection to help you protect your loved ones against financial hardship if you die. As long as your premiums are paid, your policy will remain in force no matter how long you live. Some life insurance policies without this feature only pay a death benefit until a certain age, like age 100.

Universal life insurance also has a savings feature, called cash value. Each payment you make to the contract pays for your insurance coverage and then the excess is invested to build cash value that you can use in the future. The insurance company invests this cash value and credits interest to this account. Most UL contracts also offer a guaranteed minimum interest rate so you always know that your money will earn a minimum amount. The cash value in your account also grows income tax-deferred allowing it to accumulate faster.

If you need to access your cash value, you have a couple of options. You can "borrow" your own cash value by taking out policy loans. These loans are generally not taxed as long as your policy stays in force. You can even withdraw money from this cash value without taxes as long as the total amount of money you withdraw is not greater than the total premiums you have paid. Be aware that any loans and withdrawals may generate an income tax liability, reduce available cash value, reduce the death benefit, or cause the policy to lapse.

Universal Life Offers:

• Flexible premium payments.
• Guaranteed death benefit protection on some policies.
• Potential savings feature from which loans and/or withdrawals can be taken.
• Tax-advantaged cash value accumulation potential.
• Income tax-free death benefit.

If the flexibility and cash values of UL intrigue you, but you'd rather be in control of where that money is invested, then variable universal life insurance may be for you.


If you have any specific questions regarding any life insurance coverage we offer please call 1.866.3.INSURE or click here to fill out the life insurance request a quote form and have one of our knowledgeable agents contact you at a time that suits you best.