Universal Life Insurance

Universal life insurance allows you to adjust your premium payments and death benefit within policy limits. You can pay more during high-income years to build cash value faster, or pay minimum premiums during tight times. This flexibility makes UL ideal for people with variable income or changing needs.

If you pay less than the cost of insurance charges, the difference is deducted from your cash value. If cash value depletes completely, your policy may lapse. Most UL policies have a "no-lapse guarantee" rider available that keeps coverage active as long as you pay a specified minimum premium.

Yes, most universal life policies allow you to increase your death benefit, though this typically requires proof of insurability (medical underwriting). You can decrease your death benefit without underwriting. This flexibility is one of UL's key advantages.

UL cash value earns interest at a rate declared by the insurance company, which varies based on market conditions. Most policies guarantee a minimum interest rate (often 2-3%). The current rate may be higher but is not guaranteed. Interest earned is tax-deferred.