Universal life insurance is designed to provide coverage for your entire life, similar to whole life insurance, but because of its flexible premiums feature these policies may or may not actually last that long.

Premiums are paid into your policy’s account value (after a premium expense charge), where it earns interest and sometimes dividends. Every month, various deductions, such as a charge for insurance protection are taken from the account value. If income in the account (including premiums) exceeds the expenses, your universal life insurance policy stays inforce.  You have the ability to take loans or make withdrawals from the account value for your personal needs. Note that loans accrue interest and unpaid loans, interest, and withdrawals will reduce the death benefit and cash value. The policy continues as long as the cash value is sufficient to keep the policy alive.  Universal life insurance policies are less expensive than whole life policies but do not carry the same guarantees.