There are many uses for universal life insurance, but listed below are just some of the most common uses that policy holders engage in:
- Final expenses: These can range from funeral costs, to leftover mortgage rates, to even paying off bills and car loans. It is a great ease to the family when they discover that part of your life insurance is to take care of these last remaining items that you would have most likely paid.
- Charity: If you are a philanthropist or just like to donate to your local charities, this policy can also benefit you. This allows for a portion of your funds to be directly given to the charity of your choice. In addition to leaving a legacy, you can also leave behind a great mark on the world: something people strive for all of their lives.
- Inheritance: If you have children or grandchildren, this is one of the major veins that your universal life insurance policy will run though. It is common for parents and grandparents to leave an inheritance or a lump sum behind in order to make sure that their children and grandchildren are set for life (or a good portion of it).
- Special-needs family members: This is especially important if you are aware of a family member with special needs that you know might one day cause a great financial burden on their nuclear family. This requires some thinking ahead and possible research into what kind of fees this might entail, but it is similar to inheritance in the way that you are making sure that the special needs member is taken care of to the best of your family’s ability.