MAIN Your Money Insurance Universal Life Insurance

While there's always risk involved in taking out a universal life insurance, flexibility is the key when discussing its advantages.

Universal life combines features of both whole life and term insurance. As with whole life, you can build up a cash reserve. As with term life, you can vary the premium payments and coverage amount from year to year.

The central advantage of universal life is in the interest paid. While interest on a whole life policy is adjusted annually, the interest paid on universal life insurance is adjusted monthly. This translates into the policy's cash value increasing much more rapidly in times of high interest rates.

The downside to the universal policy arrangement is, of course, in periods when interest rates drop. As low interest rates continue, the cash value drops along with it, which means having to pay a higher premium to cover the difference.

Depending on your financial situation, you may decide to stick with the safer, and more traditional term life insurance or whole life insurance policy.

On the Web, discover more detailed facts about universal life coverage with comparisons to whole and term insurance policies, its risks and benefits, along with additional information on variable universal, and adjustable life insurance...

What is Universal Life Insurance? - How it works, benefits vs. whole life, and a discussion on coverage amounts and death benefit options.

Universal Life Insurance - A guide from Investopedia with related links to more information comparing term and universal life insurance, term and whole life, and what to look for in LTC insurance policies.

Yahoo! Defining Universal and Whole Life Insurance - Expert advice on weighing the pros and cons of both policies and how your financial situation should affect your final decision.

How to Buy Variable Universal Life Insurance - Step-by-step guide to choosing the appropriate policy, what to look for in an insurance provider, dangers to avoid, related links.

Universal And Variable Life Insurance - Brief overview comparing universal, variable, universal variable, and adjustable life insurance.

also see -> Term Life Insurance | Whole Life Insurance