Universal Life is a flexible form of permanent life insurance that allows policyholders to adjust their premiums and death benefit as their financial needs change. It combines lifelong protection with a cash value account that accumulates based on current interest rates, offering more adaptability than whole life but also requiring careful management to ensure the policy remains funded and does not lapse.
- What It Is: A flexible type of permanent life insurance that combines a death benefit with a savings component that earns interest.
- What It Covers:
- Flexible Death Benefit: You may be able to increase or decrease the death benefit.
- Flexible Premiums: You can adjust the amount and frequency of your premium payments within certain limits.
- Cash Value: Grows based on current interest rates.
- Who It’s For: Individuals who want permanent life insurance but need more flexibility than whole life offers.
- Key Considerations: If you pay insufficient premiums or interest rates are low, the cash value could be depleted, causing the policy to lapse.