What is Universal Life Insurance?

Universal life insurance is a form of permanent life insurance that provides coverage for the policyholder's entire life. It offers flexibility in premium payments and death benefit amounts, allowing policyholders to adjust them according to their changing financial needs. Universal life insurance also has a cash value component that accumulates over time, providing potential access to funds for various purposes.

The remaining portion of the premium goes into a cash value account, which can grow over time and be used for various needs like withdrawals or policy loans.

Flexible Premiums
Universal life insurance offers flexibility in premium payments. This allows policyholders to adjust the amount and frequency of premium payments to changing financial circumstances, within certain limits.

Adjustable Death Benefit
Universal life insurance allows policyholders to customize the death benefit according to their needs. They can increase or decrease the death benefit amount, providing the flexibility to meet specific financial goals, such as providing for dependents or estate planning.

Cash Value Growth
Universal life insurance has a cash value component that accumulates over time. The cash value has the potential to grow based on the policy's interest rate or investment returns, providing a source of savings or additional funds that can be accessed during the policyholder's lifetime.

Policy Loans and Withdrawals
The accumulated cash value in universal life insurance can be accessed through policy loans or withdrawals. Policyholders can borrow against the cash value or make partial withdrawals, which can be used to supplement income, pay premiums, cover unexpected expenses, or meet other financial needs.