Universal life insurance is a permanent life insurance policy that provides flexible premium options along with a savings component. Universal life also offers a variety of savings investment options to fit your financial goals.

How Does Universal Life Insurance Work?

As a permanent life insurance policy, universal life offers guaranteed, lifelong benefits. Most universal life insurance offer a flexible premium payment option. With a universal policy, you may have the power to adjust your premiums or death benefits. In some cases, you may even be able to skip a premium payment with a universal policy with no fear of cancellation.

Just like whole life insurance, universal life has a savings component known as the “cash value”. Premiums paid go towards both the cost of insurance as well as the cash value. The flexibility of universal life insurance allows you to essentially shift funds between the insurance and the cash value components. If you’ve accrued enough cash value, for example, you may be able to pay for the cost of insurance itself.

Cash value can also be withdrawn or borrowed against.

Universal life offers a variety of savings options, depending on your appetite for risk and investment:

  • Fixed universal life: cash value earns a fixed interest rate
  • Indexed universal life: interest tied to the performance of an index, such as S&P 500
  • Variable universal life: invest cash value into mutual funds


Is Universal Life Right for You?

Universal life is a form of permanent insurance that offers death benefits, cash accumulation, and flexibility. This is an ideal option for anyone who wants the guaranteed benefits of a permanent life insurance plan but with flexible premium options should their financial picture change over time.

For younger people, universal life provides the opportunity to start accruing cash value that can be borrowed or withdrawn later in life - to buy a house or pay for a child’s college tuition down the road.

Universal also provides a pathway to experience the benefits of lifelong death benefits with the opportunity to not pay premiums in your retirement years if you’ve accrued enough cash value to cover the cost of your insurance.


Call Aegis Insurance Markets today at (800) 579-6369 to find out if universal life insurance is right for you and your financial goals. Our life insurance experts will help you pick the right plan for you and your family, so you can have peace of mind no matter what may come your way.