Universal Life Insurance - The Insurance Pros

What is Universal Life Insurance?

Universal life insurance (often referred to as UL) is a type of permanent life insurance that offers more flexibility and investment options than traditional whole life insurance.

Like other forms of permanent life insurance, universal life provides lifetime coverage and allows for the potential to accumulate cash value over time, but it also gives the policyholder greater control over their premiums and death benefits.

The cash value grows on a tax-deferred basis, and the policyholder can adjust both the premium payments and the death benefit (within certain limits) as their needs change.

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Universal Life Insurance is a specialized type of life-insurance. Every situation is different, therefore, we suggest setting up a one-on-one appointment if you think one of these policies may be a good fit for you.

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Types of Universal Life Insurance

Traditional UL

This is the most basic form of universal life insurance. It offers flexibility in premiums and death benefits but comes with a guaranteed minimum interest rate on the cash value. The policyholder has some control over how the policy’s premiums are paid and how the cash value grows.
The death benefit can be increased, but doing so might require additional underwriting or higher premiums.

Indexed UL

Traditional UL

Indexed universal life insurance is a type of UL that links the cash value growth to a specific stock market index (e.g., S&P 500). The cash value in IUL policies can potentially grow faster than in traditional UL policies because the growth is tied to market performance.
However, the policyholder’s exposure to market risk is limited—there’s usually a cap on the maximum return and a floor that prevents the cash value from declining below a certain level (often 0%).

Guaranteed UL

This is a hybrid product designed to offer permanent life insurance with lower premiums and a guaranteed death benefit. GULs typically don’t focus on accumulating cash value, but they provide the certainty of lifelong coverage.
GULs are ideal for those who want permanent coverage without the investment component or flexibility in premiums that traditional ULs offer.

Variable UL

Guaranteed UL

Variable universal life insurance allows the policyholder to allocate the cash value among a range of investment options (such as stocks, bonds, and mutual funds). These investments can lead to higher growth potential but also higher risk compared to IUL or traditional UL policies.
Since the cash value and death benefit are tied to the performance of these investments, it’s important to have an understanding of the underlying investment options and the risks involved.

Universal Life Insurance - The Insurance Pros

What is Universal Life Insurance?

Set up an appointment today

Types of Universal Life Insurance

Traditional UL

Traditional UL

Traditional UL

Indexed UL

Traditional UL

Traditional UL

Guaranteed UL

Guaranteed UL

Guaranteed UL

Variable UL

Guaranteed UL

Guaranteed UL

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