Universal Life Insurance

Universal Life (UL) insurance is a type of permanent life insurance. These policies have an investment savings element which is also referred to as a cash value.

These policies are considered an “unbundled” product, which means that mortality expenses, interest rate, and other expenses are factored in to calculate premium rates and cash values. This offers flexibility in making your premium payments, but it also works against you if your policy hasn't been funded correctly. Many agents have run these policies with the minimum required premiums rather than the insurance companies recommended guideline premiums.

Properly funding a Universal Life policy can make all the difference in avoiding a potential future required premium increase.