UNIVERSAL LIFE INSURANCE:
Universal Life is similar in some ways to, and was developed from whole life insurance. The advantage of the Universal Life policy is in its flexibility and the potential for greater cash value growth. It offers you the chance to change the policy (within limitations) to suit your changing needs. With this policy, you can choose the initial death benefit amount, but have the power to change it any time after the initial payment. You can also choose how and when you want to pay your premiums, within the policy’s boundaries. You can vary or even skip your premium payments as your circumstances change over time. If you decide to take advantage of this feature, your premiums could reduce your death benefits and cash value accumulation, and you might have to pay higher premiums later to keep the policy in force. This flexibility, combined with the higher interest rate, makes Universal Life an attractive insurance and investment option. In short Universal Life is the best of both worlds. Like term you can design a policy to last a certain amount of time or for your whole life. Like whole life it builds cash value that can be useful in retirement or for emergencies. It is a very flexible product that can do exactly what you want it to do. To get a universal life policy is like special ordering the vehicle you want straight form the factory with the exact options you want.