PEGRAM INSURANCE AGENCY

 Most people think of life insurance as basic financial protection for loved ones. But some types of insurance can do more including enhancing the value of your estate. Among the more flexible, and popular, types of permanent coverage is universal life.

Fundamentals:

A universal life plan is a blend of life insurance protection and investment accounts. Part of the premiums you pay goes towards insurance; the rest comprises the investment component (also known as the cash or fund value). The growth within the investment component is tax-deferred, subject to certain limits. At death, all funds may be paid to the beneficiary on a tax-free basis.

You decide how the savings component is invested, choosing one or more of the options provided by your insurance company. A wide range of investments is available, including those whose returns are linked to equity or bond market indexes, money market accounts and guaranteed interest accounts.