Such plans are very popular in developed countries, in the USA particularly. According to a 2021 survey of 128 million households conducted by FRS, nearly 20% of U.S. households own cash value life insurance policies.
Universal life insurance policies are used to solve many problems
Welfare planning is ensuring family’s financial security that is forming of financial security of the family's lifestyle in the event of a tragic loss of the breadwinner.
Estate planning is a policy as a tool for quickly replenishing the liquidity of the family budget in the event of death of the head of the family (estate planning).
Tax planning: paying inheritance taxes on foreign assets, such as overseas real estate. A 40% UK inheritance tax can be applied, for example, to the value of real estate in London after the death of its owner.
Succession planning: using a policy as an alternative or addendum to a will when planning a complex estate with a large number of family members, when there is a need to create liquidity in the context of family business succession for the benefit of inactive family members or to settle existing debts without liquidating businesses or investments.
The main advantages of universal life insurance policy
A policy owner can independently change the size and schedule of insurance premium payments. He can make a one-time large contribution and forget about payments for many years to come or for the rest of his life. He has the right to skip payments if the policy has sufficient cash value.
Source: https://news.yahoo.com/why-universal-life-insurance-may-142334141.html
Photos are from open sources.
