Brooks and Company Vol4 1st Quarter 2014 | Page 10

Tyler Carpenter Agency
410 E Taylor St Ste Q
Inside Historic Coca-Cola Building
Griffin, GA 30223
Bus: [phone]
www.tylercarpenteragency.com

Universal life insurance: Security with flexibility
Fourth and final in a series of columns on life insurance

Life insurance is a great option for people who want
to enhance their financial security. Universal life
insurance takes this security a step further by
generally allowing you to modify your premium
payments and death benefits, subject to certain
limitations.
A universal life policy is similar to other types of
permanent life insurance in that it can accumulate
tax deferred cash value. As the policy owner, you
can generally borrow against any cash value while
the policy is still active, or collect any cash value in
full – less any surrender fee and outstanding policy
loans – if you decide to end the policy.
Unlike other types of life insurance, a universal life
policy offers added flexibility that allows you to
adjust your premium payment and death benefit,
with certain limitations.
As you become more financially secure, you can
make additional premium payments that can

increase the cash value of the policy. These
additional payments are subject to maximum
amounts set by law.
If your financial situation becomes less stable, you
may be able to temporarily lower or stop payments
as long as the policy has enough surrender value to
pay the monthly insurance deduction, loan interest
and policy fees. Premium payments are subject to
minimum requirements provided in the policy.
Some universal life insurance policies also include
an “adjustable death benefit,” whic