Policy Types

Understanding Universal Life Insurance

Universal Life is a permanent insurance policy with flexible components like premium payments, in force time and cost adjustments after the guarantee period.

Universal Life - A Flexible Life Insurance Option

Universal life is type of permanent insurance coverage that is more flexible than regular whole life. As with other permanent life insurance products, many universal life policies have a cash value component. With universal life, you have more control over several important parts of the policy:

Flexible Premium Payments

To keep your life insurance policy in force, you need to make your premium payments to cover the cost of the insurance. Regular whole life charges a flat premium rate that you aren't able to adjust. However, within the limits of your contract, universal life will let you adjust how much premium you pay and how often you pay it. You can also use any cash value in your policy to cover your premiums.

Flexible Amount of Time That Policy Will Stay In Force

When you first buy some types of universal life insurance, you are able to decide how long you want to guarantee that the policy will remain in force. You can choose a set period of years, up to your entire lifetime. A longer guarantee period makes the cost of your insurance higher. A shorter guarantee period means the cost of your insurance will start out lower but will begin going up once the guarantee period ends.

Flexible Cost Adjustment

If you buy the type of universal life policy that contains guarantees that the insurance will remain in force, you can also choose how the policy adjusts for the rising cost of insurance after the guarantee period. With most such universal life policies, after the guarantee period ends, your premiums will increase. In addition to traditional universal life policies, Protective offers a unique product that adjusts the death benefit instead. This means that the premium of your policy will remain level even after the guarantee period ends, while your death benefit will begin getting smaller to make up for the higher cost of insurance.

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Understanding Universal Life Insurance.

At Protective, we believe choosing and buying life insurance doesn't have to be complex. Whether you're looking at universal life insurance, whole life insurance or another variation in the life insurance spectrum of products, our goal is to provide the information you need to make the right life insurance choices for you and your family. From explaining the differences between universal, whole and term life insurance to helping you understand how various life insurance options can protect and preserve your business, we hope you'll find everything you need to make smart decisions about life insurance protection.

A Plan that Works for You.

Protective's licensed agents can help you understand the basics of universal life insurance and create a plan that works for your needs by taking the time to understand your unique situation. You'll rest easy knowing you've got the right coverage. To find a Protective Life agent or get a free universal life insurance quote, call 1-844-733-5433 or get your quote online now.