Universal Life insurance, sometimes referred to as adjustable life insurance, is a form of Permanent Life Insurance that, in contrast with Whole Life insurance, offers considerable flexibility with both your premiums and your death benefit. As with other types of Permanent Life insurance, Universal Life covers you for your lifetime, and, as with Whole Life, accumulates a cash value.
Flexibility is the key advantage of Universal Life Insurance, as premiums may be easier to pay at one stage of your life than another. Your death benefit, premiums, and cash value can all be adjusted according to your budget and the changing circumstances throughout your life. For example, you may use the accumulated cash value to offset your premium payments when your budget is tight, or use it to increase your death benefit.
Universal Life insurance can be a great option if you’re looking for permanent coverage with a flexible payment schedule and an investment opportunity.
|Guaranteed Premiums||Yes||Yes||No – Can increase or decrease to suit your budget||Yes|
|Savings Component||Yes||Yes – Dividend is based on the insurance company’s performance||Yes – Investment portfolio is customizable||No|
|Learn more||Learn more||Learn more|
When deciding on what type of life insurance policy is right for you, be sure to speak with an insurance broker. We’ll help guide you and find you the type of policy that is most appropriate for you and your loved ones, whether it be Universal life insurance, Whole Life, or even a Term policy.