Universal Life Insurance
Insurance Glossary
Permanent life insurance with a flexible premium and an adjustable death benefit, built around a cash value account. Payments go into that account and the cost of insurance and expenses are drawn from it each month, with the balance earning interest at a rate the insurer declares subject to a guaranteed minimum, or in indexed and variable versions tied to market performance instead. If the cash value runs too low to cover the monthly charges the policy can lapse, so the flexibility comes with a need to monitor the account that whole life does not have.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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