July 6, 2022 The Newspaper Serving LGBT Los Angeles

Should You Purchase Universal or Whole Life Insurance?

When looking for a life insurance policy that has a cash value, there are two main types to consider. Whole and universal life insurance both offer coverage for as long as you live, but they have some key differences worth noting. In this article, we’ll take a close look at the difference between universal vs. whole life insurance, how each policy works and which one may be right for you.

What Type of Life Insurance Can You Sell?

If you have whole or universal coverage, you can still sell your life insurance policy through a life settlement if you meet the criteria. This guide covers everything you know about the process so you can acquire much needed liquidity. When you sell your term life insurance policy through a settlement, it may be ideal if you plan to use coverage as a form of retirement planning or financial investment.

Selling your policy can also be used for things like paying off student debt, making a large contribution toward your mortgage or funding a business venture. Whenever you sell your insurance policy, the lump sum cash payment is yours to use however you see fit. As you explore your coverage options, consider not only your long-term plans but the total value each policy provides. You should choose a plan that offers both future value and present protection for your beneficiaries.

What is Universal Life Insurance?

Universal coverage offers the greatest level of flexibility, so it’s a great choice for someone who plans on extending their family or who may want to lower their death benefit later. As a young single girl, you might not think a policy is necessary but universal allows you to take one out now that can flex with your life as needed. Premiums are also varying, which means you can adjust them to suit your budget.

If you go with universal coverage, you have adjustable benefits and premiums that allow you to match your policy to your needs. The only thing that stays consistent is a minimum amount, which you’ll have to meet in order to keep your policy active. Universal policies also have a minimum guaranteed cash value, so you can grow your wealth depending on the size of your premium contributions. For someone who wants to use their policy as a form of investment, there is more room to modify how much you earn and what amount of cash you generate over time.

What is Whole Life Insurance?

Whole life insurance has less flexibility, but it does build a consistent, tax-deferred cash value. Your premiums never change, so what you pay when you enroll is the same cost 10, 20 or even 50 years later. The money you put toward your policy each month is broken up into both a payment for the insurer and a contribution. Your cash value will generate over time, and once you hit a minimum amount, you’ll be able to either borrow against your policy or withdraw funds. In some cases, whole life insurance policies can pay dividends, which allow policy holders to reinvest and lower their monthly premiums or increase their overall cash value. This grants some flexibility, but in general, a whole life insurance policy is fixed and best suited for someone who is looking for long-term investment and permanent coverage.

in NEWS
Related Posts

Dyke Day LA Draws 1,500+ ‘Dykes of All Genders’

June 30, 2022

June 30, 2022

June 11 event draws NY Times coverage By Susan Payne More than 1,500 people descended on Sycamore Grove Park for...

Catalina Island’s Inaugural Pride Celebration Sees Youthful Turnout

June 30, 2022

June 30, 2022

June 18 event draws hundreds of locals and visitors to island By Susan Payne Avalon, a small town of nearly...

Pride Moment Comes Full Circle for LGBTQ+ Advocate

June 30, 2022

June 30, 2022

Boys & Girls Club holds second annual Gabriel Valley Pride March By Susan Payne The Boys & Girls Clubs of...

Santa Monica’s Building Bridges Art Exchange Presents: J.J. Martin’s “Role Models”

June 28, 2022

June 28, 2022

A traveling exhibit in partnership with Indianilla Cultural Center, Mexico City and Real de Catorce Cultural Center, Real de Catorce,...

Los Angeles Frenchie Reaches Record Age Milestone for Its Breed, Surpassing Recent Life Expectancy Report by Three Fold

June 23, 2022

June 23, 2022

Learn about Rocco the French bulldog  By Susan Payne Native to Brazil, Rocco the French bulldog has reached an age...

44 Years Later, MLB’s First Openly Gay Player Glenn Burke Now Celebrated by Dodgers

June 23, 2022

June 23, 2022

Glenn Burke celebrated at Dodgers Pride night By Susan Payne The Los Angeles Dodgers’ ninth annual LGBTQ+ Pride Night celebrated...

The Book Jewel Celebrates Pride Month as a Community

June 22, 2022

June 22, 2022

Westchester bookstore hosting series of events this month The Book Jewel in Westchester is hosting several events this month that...

A Staple Tamales Vendor’s Truck Was Stolen. Friends of the Vendor Are Asking for LGBTQ+ Support to Bring Back Her Only Source of Income

June 17, 2022

June 17, 2022

By Susan Payne For nearly 16 years, a 52-year-old single mother of two has been serving the Los Angeles LGBTQ+...

LGBT Center Welcomes Incoming CEO Joe Hollendoner

June 17, 2022

June 17, 2022

By Susan Payne In an in-person sustaining donor event last November, longtime Chief Executive Officer Lorri L. Jean for the...

Culver City Pride Ride and Rally Around the Corner

June 14, 2022

June 14, 2022

Sunday, June 26, 2022, 9 AM Pride Ride | 11 AM Rally Culver City’s second ever Pride celebration is set...

Police: Catholic High School Football Players Sexually Assault New Student

June 10, 2022

June 10, 2022

By Susan Payne Months of controversy over an alleged hazing scandal at a private high school in Santa Ana have...

Media Matters: Anti-Trans Violence Increases as TV News Coverage Drops 20%

June 10, 2022

June 10, 2022

By Susan Payne A report released by Media Matters’ LGBTQ Program found that national cable and corporate broadcast TV networks...

Oil Can Harry’s Named Historic-Cultural Monument

June 10, 2022

June 10, 2022

By Susan Payne For its historic and social significance to San Fernando Valley and the LGBTQ+ community, Oil Can Harry’s...

Music of Queen Preformed by the Gay Men’s Chorus of Los Angeles at Fairmont Century Plaza

June 7, 2022

June 7, 2022

Free event June 18th at 7p.m. To celebrate PRIDE the Fairmont Century Plaza located will host an incredible performance by...