Universal life insurance is a type of permanent life insurance that combines a death benefit with a cash value component. This insurance product provides policyholders with flexibility in premium payments, death benefits, and the opportunity to accumulate cash value over time.

One of the key features of universal life insurance is its flexibility in premium payments. Policyholders can adjust the amount and frequency of premium payments within certain limits, allowing for variations based on their financial circumstances. This flexibility makes universal life insurance attractive to individuals who may experience changes in income or financial priorities.

The death benefit in universal life insurance is the amount paid out to beneficiaries upon the death of the insured. Policyholders have the ability to adjust the death benefit, subject to certain conditions. Increasing the death benefit may require additional underwriting, while decreasing it might affect the policy's cash value.

The cash value component distinguishes universal life insurance from term life insurance. A portion of the premium payments goes into a cash value account, which earns interest over time. The policyholder can access this cash value through loans or withdrawals, providing a level of liquidity. However, it's important to note that loans and withdrawals may affect the policy's death benefit and could result in tax consequences.

Universal life insurance is a type of permanent life insurance that combines a death benefit with a cash value component. This insurance product provides policyholders with flexibility in premium payments, death benefits, and the opportunity to accumulate cash value over time.

One of the key features of universal life insurance is its flexibility in premium payments. Policyholders can adjust the amount and frequency of premium payments within certain limits, allowing for variations based on their financial circumstances. This flexibility makes universal life insurance attractive to individuals who may experience changes in income or financial priorities.

The death benefit in universal life insurance is the amount paid out to beneficiaries upon the death of the insured. Policyholders have the ability to adjust the death benefit, subject to certain conditions. Increasing the death benefit may require additional underwriting, while decreasing it might affect the policy's cash value.