February 11, 2025 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

What about are you protected from future wildfires?

February 9, 2025

February 9, 2025

Our hearts go out to all those impacted by the recent wildfires and Santa Ana windstorms in Southern California. We...

Actor Will Arnett Lists Stunning Beverly Hills-Area Home for $22.5 Million

February 9, 2025

February 9, 2025

Comedy Star’s Modern Farmhouse Features Custom Podcast Studio Actor and comedian Will Arnett is selling his modern farmhouse-style home near...

Shore Hotel Remains Sustainability Leader

February 9, 2025

February 9, 2025

By Susan Payne On track to open its new coastal-inspired restaurant, Shore Hotel has excited new offerings and initiatives this...

Help Shape the Future of Hart Park, Attend West Hollywood’s Public Meetings in February

February 9, 2025

February 9, 2025

WeHo Seeks Community Input on ADA Upgrades, Dog Park, and Safety Enhancements The City of West Hollywood is inviting community...

West Hollywood’s Tallest Tower Moves Forward with Environmental Review

February 9, 2025

February 9, 2025

Proposed 34-Story Mixed-Use High-Rise Would Bring 514 Apartments A proposed 34-story high-rise that could become the tallest building in West...

Rescheduled 2024 Homeless Count Needs More Volunteers on the Westside

February 9, 2025

February 9, 2025

Not Enough Volunteers to Successfully Count Unhoused Angelenos This Year With the rescheduled dates for the 2025 Greater Los Angeles...

Student Protest Over Immigration Policies Leads to Walkouts Across the Westside

February 7, 2025

February 7, 2025

Walkout Turns Tense as Counter-Protester Confronts Teen in Video From Venice Students from Santa Monica High School (SAMOHI), Culver City...

Open Arms Art Show Runs Through Mar. 22 in Burbank

February 6, 2025

February 6, 2025

Opening Exhibition Saturday Feb. 8 from 12 to 8p.m. More than an art show, the Open Arms Exhibition is an...

Quiet Luxury: What’s Inside the New Regent Boutique and Sweet July

February 6, 2025

February 6, 2025

The Regent Santa Monica Beach, known for its perfect Santa Monica getaways, or local dining at its Mediterranean-based restaurant Orla...

West Hollywood Deputies Arrest San Bernardino Homicide Suspect on Sierra Bonita

February 6, 2025

February 6, 2025

Man Wanted for Deadly Baseball Bat Attack Captured During Routine Patrol Deputies from the West Hollywood Sheriff’s Station apprehended a...

Serial Predator David Pearce Convicted of Murders, Rape in Shocking Fentanyl Overdose Case in West LA

February 6, 2025

February 6, 2025

“Dead Girls Don’t Talk,” Fake Producer Abandoned Women’s Bodies Like Garbage A jury convicted David Brian Pearce of two counts...

Best Spots to Celebrate Valentines, Galentines, or Have a Super Bowl Party on the Westside

February 5, 2025

February 5, 2025

Cocktails, Game Day Grub, Valentine’s Pasta, and a Lonely Heart’s Tea Service You will find many excellent ways to celebrate...

FDA Issues High-Risk Recall for Pre-Packaged Broccoli Florets Sold at Walmart

February 5, 2025

February 5, 2025

Recall Is Now Classified as Class I Due to Seriousness Of Contamination The U.S. Food and Drug Administration has classified...

Matū Kai Brings Its Signature Wagyu and Famous Cheesesteak to Brentwood

February 5, 2025

February 5, 2025

Team Behind Beverly Hills’ Acclaimed Matū Is Opening a Second Location One of Beverly Hills’s newest and most popular restaurants,...

West Hollywood’s Drag Story Hour Returns for 2025 Season This Week

February 4, 2025

February 4, 2025

Family-Friendly Storytelling Series Celebrates Diversity and Inclusion The City of West Hollywood will launch its 2025 season of Drag Story...