Universal life insurance sits in an unusual middle ground. It is permanent life insurance, so it can remain in force for life if properly funded, but it does not lock you into the same premium pattern as many traditional whole life policies. That flexibility can be useful. It can also create problems when a policyholder ...
Variable universal life insurance combines permanent life insurance with an investment account whose value can rise or fall with the market. That combination sounds appealing: flexible premiums, lifelong coverage, and the possibility of stronger cash-value growth than a fixed policy. It also creates a contract that demands far more attention than ordinary term life insurance. ...
Indexed universal life insurance sits between traditional universal life and market-based products, but the name can make it sound simpler than it is. An IUL policy provides permanent life insurance and a cash-value account whose interest credits are linked to one or more external indexes. The policyholder does not directly own shares in the index. ...
Universal life insurance combines lifetime coverage with flexibility. Like whole life, it is designed to remain in force for life and can build cash value. Unlike whole life, it usually allows the policy owner to adjust premium payments and, within limits, change the death benefit. That flexibility is useful, but an underfunded policy can lose ...
