Universal life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured individual. It combines a death benefit, which pays a sum of money to the beneficiaries upon the insured’s death, with a cash value component that accumulates over time.

Unlike term life insurance, which provides coverage for a specific period (e.g., 10, 20, or 30 years), universal life insurance does not have a set term. As long as the policyholder pays the premiums, the coverage remains in force throughout their lifetime.

Universal life insurance offers more flexibility compared to other types of permanent life insurance, such as whole life insurance. It allows policyholders to adjust the death benefit and premium payments within certain limits, based on their changing needs and financial circumstances. The cash value component of a universal life policy grows tax-deferred over time, and policyholders may have the option to access those funds through policy loans or withdrawals.

The premiums for universal life insurance are typically higher than those for term life insurance, as a portion of the premium goes toward the cash value accumulation. It’s important to note that if the policyholder fails to pay sufficient premiums or uses the cash value to cover premiums, the policy may lapse, and the coverage could terminate.

It’s advisable to consult with a licensed insurance professional or financial advisor to determine if universal life insurance aligns with your specific financial goals and needs, as it can be a complex product with various features and options.