Universal life insurance is a type of permanent life insurance policy that offers flexibility in premium payments, adjustable death benefits, and a cash value component that accumulates over time. It provides lifelong coverage and serves as a valuable financial tool for individuals seeking both insurance protection and investment opportunities.

Features of Universal Life Insurance:

1. Lifelong Coverage: Universal life insurance provides coverage for the entire lifetime of the insured, as long as premiums are paid. This ensures that your loved ones will receive a death benefit payout when you pass away, providing financial security and peace of mind.

2. Flexible Premiums: Universal life insurance policies offer flexibility in premium payments, allowing you to adjust the amount and frequency of premium payments to suit your financial needs and circumstances. This flexibility makes it easier to adapt your coverage to changes in your life, such as fluctuations in income or expenses.

3. Adjustable Death Benefit: Universal life insurance policies allow you to adjust the death benefit amount over time to match your changing needs and circumstances. You can increase or decrease the death benefit amount within certain limits, providing the flexibility to customize your coverage as your life evolves.

4. Cash Value Accumulation: Universal life insurance policies include a cash value component that accumulates over time on a tax-deferred basis. A portion of your premium payments goes towards building cash value, which earns interest at a rate set by the insurance company. This provides a source of savings and investment within the policy.

5. Interest Crediting Options: Universal life insurance policies offer different interest crediting options for the cash value component, such as fixed interest rates, indexed interest rates, or variable interest rates. Policyholders can choose the crediting option that best suits their investment preferences and risk tolerance.

6. Policy Loans and Withdrawals: Universal life insurance policies offer flexibility in accessing the cash value through policy loans or withdrawals. Policyholders can borrow against the cash value or make withdrawals to supplement income, fund education expenses, or cover other financial needs, providing a source of liquidity and financial flexibility.