Universal life insurance also allows flexibility to the exit strategies from the insurance contract as well as a Zero interest loan which provide the insured with access to the growth inside the policy income tax free for the time being.

Universal life insurance was created from the ideals of whole life insurance but catering to the whims of people more so than whole life can. However, universal life policies are very flexible. As the policy owner, you can vary the frequency and amount of premium payments and also increase or decrease the amount of the insurance to suit changes in your situation.

Benefits of universal life insurance

• The primary benefit of universal life policy as opposed to other types of policies is that you can increase or decrease the amount of your insurance, and increase or decrease the amount of your premium.
• With universal life you can lower the amount of your insurance to match with your decreasing mortgage.
• The money you put into your cash value account earns tax-deferred interest. You can increase the money you put in your cash value account and withdraw it when you want.
• Your beneficiaries will receive the proceeds of your policy without having to pay taxes and without going through probate.