Universal Life Insurance Key Points

Universal Life insurance is a type of Permanent Life insurance. Much like a Whole Life insurance policy, Universal Life insurance has cash value that accrues in tax-deferred savings over time. In many respects Universal Life has many of  the features of both Whole Life and Term Life insurance, since as with Term Life, you can also vary the premium payments and death benefit amount from year to year.

Key Points of Universal Life Insurance

  • Universal Life has cash value.
  • You can adjust premiums and coverage over the life of policy.
  • Universal Life insurance policies have a greater degree of flexibility than traditional Whole Life policies.
  • The investment portion of your premium is placed in a variety of bonds, mortgages and money market funds.
  • Interest rates will vary, but will not drop below a minimum, usually 4 percent.
  • Interest is adjusted monthly, not annually as in Whole Life insurance.

Consider This

With a Universal Life insurance policy, you can decide on your premium amount to fit your financial circumstances – but if you pay too low of an amount for too long, the policy could lapse, leaving your family unprotected. Always check with your insurance agent before lowering your premium.  


Affordable Life Insurance Rates
Are Waiting For You!
Choose Your State

Related Information

Universal Life Insurance Overview

Universal life insurance is a form of permanent life insurance. Find out how it works and how it differs from whole life insurance.

Read More

Is Whole Life Insurance a Good Investment?

Many whole life insurance policies offer an investment component, but they tend to be more expensive than term life insurance.

Read More

How Do Insurance Companies Define Whole Life Insurance?

Shopping for a life insurance policy? It’s important to understand what defines whole life insurance, as compared to term plans. Read on to learn more.

Read More

Types of Life Insurance

There are two main types of life insurance: permanent life insurance and term life insurance.

Read More

The Pros and Cons of Whole and Term Life Insurance

Before weighing out the pros and cons of life insurance, it’s important to understand its benefits. How do term and whole life policies differ?

Read More

How to Choose Between Term and Whole Life Insurance

Term life insurance covers you for a set period of time, while whole life policies last for the rest of your life. Learn more about how these types of plans differ.

Read More

Affordable, Low-Cost Life Insurance

Term life insurance is usually a more affordable option than a permanent or whole life policy. Find out more in this guide.

Read More

How Does Whole Life Insurance Work vs Term Life

Whole life insurance is a type of permanent life insurance policy that accumulates cash value over time.

Read More

Whole Life Insurance Policies: What to Know

Whole life insurance pays out a death benefit to the beneficiary when you die and accumulates cash value over time.

Read More