What is Universal Life Insurance?

What Is Universal Life Insurance? A Simple Guide to Flexible, Lifelong Protection

Universal Life Insurance is a type of permanent life insurance that offers flexibility — both in how you pay and how your policy grows. Like Whole Life Insurance, it provides lifelong coverage and a cash value component, but with more control over your premiums and death benefit.

In simple terms:

Universal Life Insurance lets you adjust your plan as your life changes, while keeping your loved ones protected.

How It Works

Each payment you make goes toward two things:

1. Your life insurance coverage — which pays your beneficiaries if you pass away.

2. Your cash value account — which earns interest and grows over time, tax-deferred.

You can increase or decrease your payments within certain limits, and even use your accumulated cash value to cover future premiums when needed.

The Key Feature: Flexibility

Life changes — your insurance should too.
With Universal Life, you can:

• Adjust your coverage amount as your financial needs evolve.

• Change your payment schedule if your income fluctuates.

• Grow cash value faster when interest rates are strong.

It’s an adaptable plan for people who want long-term coverage with financial flexibility.

Who It’s Best For

Universal Life Insurance is ideal for:

• Families who want lifelong coverage that can evolve with them.

• Business owners who are seeking key person coverage, business succession planning, and funding buy sell agreements. The accumulated cash vale may also provide a source of funds for future capital.

• Individuals who want to combine life insurance with potential savings growth.

Universal Life vs. Whole Life: What’s the Difference?

While both are permanent insurance, the main difference is control:

• Whole Life offers guaranteed premiums and fixed growth.

• Universal Life gives you adjustable payments and interest-based cash value growth.

If you want stability, Whole Life may be better.
If you want flexibility and control, Universal Life may fit your goals.

Think of Universal Life Insurance as a customizable safety net — one that adapts as your life changes, helping you protect your family and grow financial security at your own pace.