As with all life insurance, the main purpose for buying a Universal Life insurance policy is the death protection provided to your loved ones at your death.

Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly. 

A flexible universal life policy can address a wide variety of financial planning needs such as:

• Business protection against loss of a key employee
• Funding for buy-sell agreements at death or upon disability or retirement
• Supplemental benefit programs for key people
• Income substitution at death for dependents
• Final expense cash needs
• Tax-deferred accumulation
• Charitable bequests
• Efficient transfer of assets to beneficiaries