This type of insurance is used for different purposes. It allows you insure yourself against accidents and death, but at the same time, accumulative insurance allows plan your future by making savings for goals important to you.
“This type of life insurance is an excellent financial tool that guarantees a stable income,” said John Maclean, a certified specialist on financial planning and regional director at Penn Mutual.
Universal life insurance allows protect contributions from inflation and get investment profit. The insured amount immediately includes investment income guaranteed by the insurer. An additional income from the placement of reserves by the insurer in the amount of the excess of the received profit over the guaranteed rate is annually accrued to the client. Insurance companies get return on investments in enterprises, securities, precious metals indices, etc. When the contract expires, the client receives additionally earned funds along with the insurance amount.
“If your financial needs are beyond short-term remuneration and retirement annuity, then endowment insurance is the best option. Besides, purchase of such policies is supported by the state,” explained Kurt Johnson, a certified specialist in financial planning and managing partner and CEO of Pacific Capital Resource Group.
Sources: https://www.businessinsider.com/personal-finance/who-should-have-whole-life-insurance
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