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Universal Life Insurance

Learn about Universal Life Insurance


A unique and very beneficial kind of life insurance, universal life coverage provides policyholders and their families with both death benefits and the added benefit of accumulated cash value over time; this is what makes this type of coverage different from other kinds of life insurance.

Why Universal Life?

While generally there are higher premiums for this kind of coverage, it is considered in many ways to be better due to the aspect of the cash value of the policy potentially increasing significantly as time goes on. When you seeking good life insurance coverage, (or if you have been offered it as part of a workplace benefit package), you are counseled to look further into universal policies.

Who Benefits?

Normally this type of coverage is best suited for individuals who wish to take advantage of having death benefits while also building up an asset that can accumulate significantly in its cash value. The death benefits can usually be adjusted to fit one’s needs and plans as well. One determines how much coverage is right for them before buying the coverage and then can tailor it as to how quickly the cash value accumulates by adjusting the premium payments either upward or downward. One’s financial goals can be flexibly helped toward achievement with this coverage. The cash value can grow over time or one can utilize the option to withdraw some of it when needed. For example, one could pull some value out of it to go on a long-postponed vacation or to have make home improvements, etc.

Workplace Benefits

Employers often provide this policy as part of a workplace benefits package. This happens to lower the policy cost for employees when they buy this insurance through their employer. The insurance company also can provide discounts when groups of people are covered.


With each premium payment, a part is applied to the coverage while another amount is allocated to the cash value. Due to this mechanism, the monetary value continues to build and the cash value also can earn interest, which can help add even more value to this special policy.