Life insurance may be an essential component of your financial plan, but that doesnt mean you should buy the first policy you find. The reality is that there are many different types of life insurance to consider, and some may work better for your needs than others.
For example, if you want a policy that offers a guaranteed death benefit until the day you die, youll need to focus on permanent life insurance. But even then, there are several types of permanent life insurance coverage, and the details within each type of policy can vary even more.
Universal life insurance is one type of permanent life insurance to consider, but how does it work? Lets dive into the different types of universal life insurance you can buy and the reasons a person might want to purchase this type of policy.
What is universal life insurance?
Universal life insurance which may also be referred to as adjustable life is a type of permanent life insurance thats intended to provide benefits until the day you die. However, this type of policy may be more flexible than a traditional whole life insurance policy.