Universal Life Insurance
Flexible Permanent Protection-Â Universal Life Insurance
Permanent Protection With Flexible Features
Adjust your payments to fit your changing financial goals, providing the stability you need for the long term.
Death Benefits
Universal life insurance is a type of permanent life insurance that may provide flexible premium options, adjustable death benefits, and potential cash value accumulation, depending on the policy.
A death benefit may be payable to designated beneficiaries following a covered death while the policy is in force, subject to policy terms.
Cash Value
Build and access your own cash value, allowing you to use the funds for any purpose while maintaining coverage.
Understanding the Structure of Universal Life Insurance
Universal life insurance is a form of permanent life insurance. Depending on the product, premiums, policy charges, credited interest, and cash value interact to influence how the policy operates over time.
Premium Structure
Depends on term and renewal provisions
Generally scheduled premiums
1
2
3
4
Flexible Premiums Require Careful Planning
Policy Charges
Understanding Cash Value Access
Death Benefit Protection
Some universal life insurance policies allow eligible policyholders to access available cash value through policy loans or withdrawals. These transactions can reduce policy values or death benefits, create charges or tax consequences, and increase the risk of policy lapse.
Availability, restrictions, and effects depend on the insurance contract.
The insurer deducts applicable charges, including costs associated with insurance coverage and policy administration.
Eligible policy value may earn interest or other credits according to the product's terms and crediting method.
The policy may provide a death benefit while it remains in force, subject to its provisions.
Certain universal life policies permit adjustments to premium payments within contractual limits. However, the policy must have sufficient value or applicable guarantees to support ongoing charges.
If payments and available policy value are insufficient, coverage may lapse. Regular reviews can help policyholders better understand their funding needs.
Two Approaches to Permanent Life Insurance
Feature
Whole Life
Universal Life
Coverage Type
Permanent
Permanent
Premium Structure
Generally scheduled and predictable
May offer payment flexibility
Cash Value
Generally includes policy guarantees
Depends on product and crediting method
Death Benefit
Generally specified in the contract
May offer adjustment options
Policy Management
Usually more predictable funding structure
May require closer monitoring
Coverage Type
Whole Life
Permanent
Universal Life
Permanent
Premium Structure
Whole Life
Generally scheduled and predictable
Universal Life
May offer payment flexibility
Cash Value
Whole Life
Generally includes policy guarantees
Universal Life
Depends on product and crediting method
Death Benefit
Whole Life
Generally specified in the contract
Universal Life
May offer adjustment options
Policy Management
Whole Life
Usually more predictable funding structure
Universal Life
May require closer monitoring
Neither policy type is appropriate for everyone. Reviewing your needs, risk tolerance, and long-term goals can help you evaluate which type of permanent life insurance may be more suitable.