Universal life insurance offers death benefit protection but also has a savings element which is invested and can provide a cash value build up. The death benefit, cash value build up, and premiums can be reviewed over time and can be changed to meet the policy owner’s needs if desired. Universal Life was built to give the policy owner flexibility with their policy.
This may be ideal for the consumer who has a need for life insurance, is somewhat conservative, and wants the guarantees of a fixed, minimum interest rate with the potential for additional interest credits. Increasing the death benefit may be subject to additional underwriting approval.
Flexible death benefit
Policy cash values are credited a current interest rate that is set by the insurance company and which is subject to change but it will never be lower than a guaranteed minimum interest rate