Universal Life

For policyholders who want flexibility and a greater level of control over the details of their policy, universal life insurance delivers several advantages compared with other forms of permanent life insurance.

The biggest advantage of universal life insurance is that it empowers policyholders to adjust the size and timing of their premium payments, reduce the size of their policy’s death benefit in exchange for greater cash value, and make other adjustments to adapt to their changing financial needs and different stages of life.

+ More affordable than whole life insurance.

+ Flexible payment options – The policyholder can decide how much and when to pay – if at all!

+ Adjustable death benefit – The death benefit can be reduced or increased depending on the policyholder’s needs.

+ Guaranteed interest rate – Cash value is guaranteed to keep growing.

+ Adjustable coverage for changing needs.

Universal life insurance has a bit more complexity for policyholders when compared with whole life insurance, but one aspect is the same: the interest rate on the cash value of a universal life insurance policy is guaranteed never to drop below a pre-defined level. This means that no matter what other changes the policyholder makes, the cash value will keep growing.

Of course, the policyholder still needs to keep making premium payments and avoid borrowing too much from the cash value of the policy. But as long as the policy is in force, the cash value is guaranteed to keep growing at a steady rate of interest.