Policy Types

How Is A Universal Life Insurance Policy Flexible?

If you have decided that universal life insurance is the right choice for you, be sure you know and understand the additional benefits that this type of policy can provide.

Universal Life Insurance Policy Flexibility

Additional universal life insurance policy benefits

You've been shopping for life insurance, and have decided that universal life insurance might be a good choice in that it offers a lifetime coverage, but with more flexibility than whole life. But what does flexibility in a universal life insurance policy really mean and what are the benefits to you?

Flexible death benefit.

The death benefit of a life insurance policy is the amount of money that is paid out to your beneficiaries upon your death and is determined by the life insurance contract. With most life insurance policies, you typically cannot increase or decrease the death benefit. However, with a universal life insurance policy, you have the flexibility to adjust the death benefit (within the plan limits) up or down - without having to buy a separate policy. But, an increase in the death benefit could result in additional underwriting and/or a new medical exam, depending on you policy's language.

Flexible payments.

As your financial needs change, you may find the flexible premium payments provided by a universal life insurance policy to be a good option, allowing you to change the amount and frequency of your premiums. Because of its potential to build a cash-value over time, your premium payments may be increased, decreased, or even skipped depending on the policy's cash value.* If you want to learn more about the many other benefits of a universal life policy, we can help. At Protective Life, our licensed agents are ready to answer your questions and help you understand the basics of universal life insurance to see if it's the right policy for you.

Most universal life insurance policies accumulate cash value over time. You can then borrow from your accumulated cash value, up to a maximum limit, for any reason, like paying college tuition, or using for supplemental retirement income. Loans will accrue interest and reduce the policy's death benefit by any outstanding balance, however. If this flexibility appeals to you, let us help you get a quote today.

*To keep your universal life insurance policy in force, you must make your required premium payments on time.
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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Your Universal Life Insurance Policy

A universal life insurance policy can provide a great deal of flexibility for policyholders that other life insurance policies can't. This article looks at how the flexibility in a universal life insurance policy works and how it may be a benefit to you. For more information, visit the Protective Life Learning Center.

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