Is Universal Life Insurance Ever A Good Idea? 
It is always tempting to jump on the lowest cost life insurance available - and that is generally term life insurance . The payout on term insurance is less than 2 % . All too often , I meet people that have had a string of term policies throughout their life and see the premiums increase dramatically as they age to the point where they can no longer afford any term coverage . This could be solved with the purchase of a universal life policy . Universal life insurance can last your entire lifetime without having to re-qualify . You never know when you will have a life-changing accident or health issue that can make qualifying for a new policy difficult -LRB- causing prohibitively expensive premiums -RRB- or even a `` decline '' . Purchasing a universal life policy when you are relatively young can provide the necessary , guaranteed lifetime coverage at a low monthly premium and give your family a tax free death benefit upon your passing . Under the category of `` Universal Life '' is Indexed Universal Life which can have significant advantages for folks looking to build up a cash value inside the policy that can help pay for college and even offer an additional income stream during retirement . Life insurance and the type you purchase always comes down to the needs of the individual and their family . Consulting a qualified life insurance professional to determine which type best suits your situation is important . 