Universal Life Insurance

Universal life insurance (UL) is a type of permanent life insurance offering flexible premiums, adjustable death benefits, and cash value accumulation. Universal life insurance (UL) is an excellent choice for individuals looking for life insurance protection with the potential to accumulate cash value over time. The cash value can be accessed through policy loans, and the policyholder can also adjust the death benefit and premium payments based on their needs. Universal life insurance (UL) policies are typically more expensive than term life insurance policies, but they offer the added benefit of cash accumulation.

Types of Universal Life Insurance

Universal life insurance is a type of permanent life insurance that offers both protection and flexibility. It provides a death benefit to your beneficiaries in the event of your death, but also allows you to adjust the policy’s premiums and death benefit as your life changes. There are three types of universal life insurance policies available: variable universal life insurance, indexed universal life insurance, and traditional universal life insurance. 

Variable universal life insurance allows you to select from a range of investment options in order to build up cash value. Indexed universal life insurance provides a death benefit and a cash value that is linked to an external market index such as the S&P 500. Traditional universal life insurance offers the most guaranteed protection, with a guaranteed minimum interest rate and a guaranteed minimum death benefit. 

Regardless of the type of universal life insurance policy you choose, it is important to understand the features and benefits of each policy and to speak with a financial advisor to determine which type is right for you.