Universal Life is a type of permanent life insurance that comes with greater flexibility than other policies. It includes a cash account that grows in value over time. Premium rates may also vary, as they are tied to the value of the cash account and may be reduced or even eliminated as the cash account value grows; however, the cost of insurance may grow above the premium amount, at which point the cash value will start reducing. Universal Life provides better visibility for the policyholder, as the policy expenses and cash value interest-rate are all known. Universal Life also has two death benefit options, one in which the cash account is allowed to grow until it reaches the death benefit upon maturity (which allows premiums to be reduced or even stopped) and a second option that adds the cash account value to the death benefit, resulting in a larger payment to the policy beneficiary (but which may result in higher premium costs for the policyholder.)
Universal Life is a complex product that is best understood though a personal consultation with one of our agents. Please contact us for more in-depth information to help determine if this product is right for you.