Permanent coverage with built-in flexibility.

How universal life works

Universal life (UL) is a form of permanent life insurance. Each premium payment covers the cost of insurance (essentially annual renewable term), and any remaining amount is credited to a cash value account that earns interest. The flexibility of UL allows you to increase or decrease your premium payments — within limits — and in some cases adjust your death benefit.

Types of universal life

• Traditional UL: Cash value earns interest at a declared rate set by the carrier, typically tied to current market rates with a guaranteed minimum floor.
• Indexed UL (IUL): Cash value growth is tied to a market index (e.g., S&P 500) with a floor (no loss) and a cap on gains. More complex — requires careful review of illustration assumptions.
• Guaranteed UL (GUL): Focuses on providing a guaranteed death benefit with minimal cash value accumulation at a lower premium than traditional whole life. Most predictable UL option.

What you should know honestly about UL

Universal life policies are more complex than term or whole life. The flexibility that makes them appealing can also create risk: if interest rates decline or you underfund the policy, the cash value can erode and the policy may lapse unexpectedly. We will always show you a policy illustration at multiple interest rate assumptions — not just the optimistic one — before you apply. If any aspect of the illustration is unclear, we will explain it until it is.