Universal life insurance (sometimes called universal insurance) gives you lifelong protection and cash value you can use for anything, anytime, plus the flexibility to adjust your policy along the way as your life and needs change. It lets you choose the amount of your death benefit and how much you pay in premiums, as well as when you pay them. Universal Life gives you permanent life insurance coverage with premiums that are lower than you would have with whole life. You have a flexible death benefit (as opposed to guaranteed) which lets you choose to keep the amount level or increase it (within limits). You'll also have the flexibility to choose how much you pay in premiums, and when you pay them. You can choose to pay more in some years and less in others—which can be a huge help if you have an irregular cash flow, are self-employed, own a business, or earn money through royalties. As long as there is enough cash value to pay your policy's monthly fees and expenses, your coverage will generally continue

 Universal life insurance policies accumulate cash value — cash value that grows tax deferred and that you can use for anything, anytime, usually without owing taxes. UL policies allow the policyholders borrow a portion of their policy’s cash value under fairly favorable terms. And interest payments on policy loans go directly back into the policy’s cash value.  Interest is charged on the loan, but there is no financial underwriting, so you can borrow at any time against your policy, and the repayment terms are flexible. You can repay on your own terms or allow the loan interest to be added to the loan. Unlike bank loans or mortgages, you do not have to pay back the loan you take when borrowing from a UL policy. But when you borrow the money based on your cash value, the amount you borrow may reduce the death benefit from your policy's life insurance portion.

After the insured passes away the whole life insurance death benefit is distributed to beneficiaries, but any excess cash value may be retained by the insurance company. Depending on how the policy is structured, benefits may or may not be taxable but in general, life insurance proceeds are tax free. There are a few exceptions where the death benefit may be subject to estate tax or gift tax, but this only applies if the overall value of your estate exceeds federal or state limits

Guarantees are based on the claims paying ability of the issuing company.  This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice.