Universal Life Insurance

Universal life insurance is a permanent life insurance policy that offers premium and death benefit flexibility. Premiums can range from a minimum premium (in some cases zero) to a maximum amount allowed by the contract. Due to the flexible nature of the premium payments some of the death benefit risk is shifted to the policy owner. Provided there is sufficient cash value to cover the cost of insurance and administrative expenses the policy will stay in force.

Like other permanent life insurance policies, a universal life policy has 3 components (1) premium, (2) cash value, and (3) death benefit. The cash value is credited interest each month determined by the life insurance carrier. Due to premium flexibility and, in some cases, lack of guarantees, universal life can be less expensive than other permanent life insurance policies.

Additional Universal Life Insurance Resources