Universal Life Insurance
Universal life insurance is also know as ‘Permanent Insurance’ and is relatively similar to Whole Life Insurance, but with a difference.
Universal life insurance builds on term life and adds a cash component. Here, instead of just selecting a specific term and putting 100% of your premium towards the policy, part of your premium will actually go into a cash account in the policy. This cash account earns interest and accumulates tax-deferred.
Universal life insurance provides additional flexibility. Because it has a cash component you could actually temporarily stop making premium payments as long as the cash value can cover the cost of insurance. In addition, you may also be able to increase or decrease the death benefit over time.
Also, with Universal Life, you can usually borrow against the policy in the form of a loan.