Universal Life Insurance

A type of permanent life insurance that offers flexible premium payments by combining the death benefit with a cash value component. Unlike whole life insurance, you can adjust the amount and timing of your premium payments (within limits) and increase or decrease your death benefit. The cash value earns interest at a rate set by the insurer and grows tax-deferred. While the death benefit, cash value and premiums of Whole Life are guaranteed, that is not the case for Universal Life – meaning the policy might not perform as expected.

Glossary