Universal life insurance provides permanent life insurance protection and access to cash values that grow tax-deferred. The major advantage of UL is flexibility: you can change the protection level of the policy (within bounds) and you control the amount and frequency of payments (again, within bounds).
This life insurance offers protection for your family and strategies for leaving a legacy to them. It can also help small business owners with continuation planning.
Find the right insurance for your situation. Compare term, whole, universal and variable universal life insurance.
Advantages and disadvantages of universal life insurance
A universal life insurance policy has the flexibility to adjust to your changing needs.
Your policy's cash value earns interest based on a contractually-stated financial index (or a blend of indices), and this growth is tax-deferred. You can access your cash value almost anytime.1
Keep in mind that as your life changes (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Take care to ensure universal life insurance is suitable for your long-term needs. You should weigh any associated costs before making a purchase.
Life insurance has fees and charges associated with it that include costs of insurance that vary based on the insured person’s sex, health and age, and has additional charges for riders that customize a policy to fit your individual needs.