The term "Universal Life" refers to a type of permanent life insurance policy that combines the benefits of both whole life and term life insurance. This means it provides coverage for your entire lifetime, as well as an investment component which accumulates cash value over time. The cash value can be used to pay premiums or taken out as a loan, and it also has the potential to grow in value through interest earnings.
The main advantage of Universal Life insurance is that it provides lifelong coverage while allowing you to adjust your premium payments according to your financial needs. This means you can pay more during times when you have more disposable income or less during periods of financial hardship. Additionally, the cash value accumulation component allows for tax-deferred growth and can serve as a supplemental retirement savings vehicle.
Overall, Universal Life insurance provides both protection and investment opportunities in one policy, making it an attractive option for those looking for long-term financial security.