It also includes a cash value component that grows over time based on the performance of the underlying investments.
Universal life insurance offers flexibility in terms of premium payments and coverage amounts, allowing you to adjust your policy as your financial situation evolves.
How Universal-Life Insurance Works
When you purchase a universal life insurance policy, you pay premiums that contribute to both the death benefit and the cash value component.
The insurance company invests the cash value portion, typically in low-risk investments. The cash value grows over time, and you can use it in several ways, such as borrowing against it or withdrawing funds.
