An infographic titled "Universal Life" explaining its features like flexible premium, flexible death benefit, and cash value, using illustrations of money, scales, and documents against a dark background.

Create an illustrated lesson with these words UNIVERSAL LIFE Universal life is a form of permanent life insurance. Its major distinguishing feature is: FLEXIBILITY Think: Flexible Premium + Flexible Death Benefit ⸻ Flexible premiums The policyowner may have flexibility in how much premium is paid, subject to the policy’s requirements. This is very different from traditional whole life. Whole life Fixed premium Universal life Flexible premium ⸻ 💵 UNIVERSAL LIFE CASH VALUE Universal life generally has a cash-value account. Premium dollars can be allocated among things such as: * Cost of insurance * Policy expenses * Cash value Interest is credited according to the policy’s terms. ⸻ 🔄 FLEXIBLE DEATH BENEFIT Universal life can generally allow the policyowner to choose/change among death-benefit structures permitted by the contract. A common distinction is: Option A Generally a level death benefit structure. Option B Generally an increasing death benefit structure, where the death benefit can include the policy’s cash value in addition to the specified amount. The exact contractual mechanics matter. ⸻ ⚠️ UNIVERSAL LIFE EXAM TRAP Flexible premium does not mean free premium. If insufficient money goes into the policy to cover: * cost of insurance * expenses * other charges the policy’s cash value can decline and the policy can eventually lapse. Voir plus