Universal Life Insurance is a flexible life insurance plan. These policies are interest-sensitive and allow you to change the death profit and/or premium payments, within limits, to fit your condition. Your net payments are useful to the growth fund, which earns interest. The monthly cost of the death profit and policy administration is deducted from the accumulation fund. As with Whole Life Insurance, the cash value is yours — you may withdraw it or borrow against it at any time. Or, you can use your cash value to pay premiums.

While Universal Life insurance policies maintain certain guarantees, they offer benefits that are based on current statement for the fundamental interest, mortality, and expense method. These current assumptions are based on current market situation and actuarial assumptions, which may change over periods of time. Changes in these assumptions may require additional premium payments in order to meet your needs. These products should be purchased with a thorough understanding of the impact changing circumstances will have on policy benefits and values.

Most Universal Life Insurance policies are issued only after a medical questionnaire and in some cases only after medical tests.

When looking at your insurance needs, don't get afraid of the cost of permanent coverage. The new universal life insurance plans are almost magical in the way that they can guarantee rates to 100, evaluate to regular guaranteed level term insurance.