Universal life insurance provides lifelong protection, flexible premium, and the ability to accumulate cash value on a tax-deferred basis, as well as provide a death benefit to your beneficiaries.
- The flexibility allows the policy owner to modify (within certain limit) the policy face amount or correspond premium in response to changing needs or circumstances
- The owner has no control over how the cash value portion of the policy is invested. A minimum rate of return is specified in the policy
- The policy’s face amount can increase or decrease according to the owner’s payments into the policy
- Although the premium schedule will be established at issue to correspond to the owner’s life insurance needs and goals, current premium payments may or may not be necessary to keep the policy in force
- The owner may typically take policy loans and withdrawals, which will affect the amount of policy values generally including the amount of death benefit proceeds paid out to beneficiaries