What is the primary purpose of having a Universal Life policy?

The primary purpose of a Universal Life policy is to allow adjustments in premiums and death benefits. This flexibility is a key feature of Universal Life insurance, distinguishing it from whole life policies, which have fixed premiums and death benefits. With Universal Life, policyholders can increase or decrease their premium payments within certain limits, and they can also modify the death benefit amount as their needs change over time.

This adaptability enables policyholders to manage their insurance costs and benefits according to their financial situation and goals, making Universal Life a versatile option for those seeking both life insurance coverage and the potential for cash value accumulation. It empowers individuals to tailor the policy to fit their evolving needs, whether that means making higher contributions in some years or reducing their premium during periods of financial strain.