Universal life insurance provides a payout upon your death. The money goes to your family to pay various expenses. It’s a way for them to replace your income during a difficult time. The money can be used as the family sees fit.
A universal life policy works like a standard life insurance policy, as payments go to your beneficiary. The difference is that a universal policy has a cash value that you can use before you die. You can borrow from the plan if it has accumulated money. It also acts as an investment, as the funds are invested in different types of items. The universal policy is slightly more expensive than a traditional policy, but it offers more benefits.
The amount of the policy varies according to your needs. You should get at least enough coverage to handle burial expenses and a few months worth of household expenses. But premiums increase with the coverage amounts, so keep that in mind.
Life insurance is generally cheaper the younger and healthier you are. But if you get the policy as a workplace benefit, your age and health might not have an influence. But if you purchase the policy on your own, the insurer will likely want to know your health history.