Universal Life

Universal life insurance, like whole life insurance, has the possibility for life-long coverage up to the age of 121. However, it allows for flexibility in the timing and amount of premiums and the ability to change the death benefit amount. Within contract restrictions, you determine the amount of premium to pay. That payment is deposited into a separate account within the policy, and the insurance's cost is withdrawn from the account each month. Your insurance will remain in effect as long as the account has sufficient value to meet the deductions. You can increase your cash worth by paying a higher premium. When circumstances are rough, you can reduce or even suspend premium payments if the cash value is sufficient to meet insurance expenses.