Universal Life

An unbundled Life product with a separate investment component. It typically does not participate in the insurance companies profits.

Universal Life Insurance policies are one type of permanent insurance: a policy that covers you for your entire lifetime rather than a pre-determined portion of your lifetime as in Term Life policies.

A Universal Life policy keeps the savings and insurance components completely separate. Within policy limits, you can decide how much or how little you want to pay into the policy, or even pay a single premium (deposit) to fund the entire policy. You decide how your premium (deposit) is invested, and can withdraw cash from your policy or borrow against it. You can adjust the premium and the face value.

A Universal Life policy allows you to accumulate interest on a tax-advantaged basis enabling you to realize returns that may be significantly higher than those offered by traditional savings vehicles.