Universal Life Insurance
Flexible permanent coverage with adjustable premiums.
Typical cost: $75 – $400+ per month
Universal Life Insurance
Universal life offers permanent coverage with flexibility. Unlike whole life's fixed structure, universal life lets you adjust your premium payments and death benefit as your needs change. Cash value earns interest based on current rates.
Interest Rate Sensitivity
Universal life cash value grows based on current interest rates, with a guaranteed minimum floor. In low-rate environments, policies may require higher premiums to stay in force. Monitor your policy to ensure adequate funding.
What's covered
Flexible Premiums
Pay more or less within limits as your financial situation changes.
Adjustable Death Benefit
Increase or decrease coverage as needs evolve.
Cash Value
Earns interest based on current market rates with a guaranteed minimum.
Tax-Deferred Growth
Cash value grows without annual taxation.
Policy Loans
Borrow against cash value at competitive rates.
Tips
- • Monitor your policy annually—underfunding can cause it to lapse
- • Interest rate sensitivity means cash value projections aren't guaranteed
- • Flexibility can be valuable if your income varies
- • Compare guaranteed vs projected values when evaluating policies
- • Consider indexed or variable universal life for potential higher returns
Other life insurance types
Term Life Insurance
Affordable coverage for a specific period of time.
Whole Life Insurance
Permanent coverage with a cash value component.
Variable Life Insurance
Permanent coverage with investment options.
Final Expense Insurance
Coverage for funeral costs and end-of-life expenses.
Survivorship Life Insurance
Joint policy covering two lives, paying out after the second death.
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