How does universal life insurance work?

What is universal life insurance? You may be wondering. Universal life insurance is a flexible type of life insurance—sometimes known as permanent life insurance or cash value life insurance—that can adapt with you throughout your lifetime and increase in cash value as time passes. Its value can earn interest on a tax deferred basis. Your needs are likely to change over the years, which is why Farm Bureau Insurance offers universal life policies that you can customize as your needs change.

Can I skip payments with universal life insurance?

With universal life insurance, your cash value can build over time, depending on how you fund your policy. If a sufficient amount of cash value builds, then you may have the option to miss the occasional premium. However, because a universal life insurance policy uses interest on the cash value to help offset future premiums, missing a payment will alter how it was originally shown.

Is Universal life insurance expensive?

“Expensive” is a ‘relative’ term. With universal life insurance, you have more flexibility in how premiums can be paid. Generally, if you pay more in the early years of the policy, the future cost may be less when compared to other life insurance options. Premium amounts and coverage options are dependent on your individual situation. That is what sets Farm Bureau Insurance apart – the individualized attention and advice of our agents.