Universal life insurance is a type of permanent life insurance that provides both a death benefit and a savings component, similar to whole life insurance. However, unlike whole life insurance, universal life insurance policies offer more flexibility and control over the premiums and death benefits.

With universal life insurance, the policyholder can adjust the amount and frequency of their premium payments, as well as the death benefit amount, as their financial situation and insurance need to change. This flexibility can make universal life insurance a good choice for those who want more control over their life insurance policy and the ability to adjust it as their needs change.

Another key feature of universal life insurance is the cash value, which grows tax-deferred over time based on the interest rates set by the insurance company. The policyholder can access the cash value through policy loans or withdrawals, which can be used to supplement retirement income, pay for emergencies, or fund other financial goals.

Universal life insurance policies also offer a variety of options for how the cash value is invested, including fixed, indexed, and variable accounts. This can allow policyholders to choose the level of risk they are comfortable with and potentially earn a higher rate of return on their cash value.

It's important to note that with universal life insurance, the policyholder

older assumes more risk than with whole life insurance. If the cash value doesn't grow as quickly as expected, the policyholder may need to pay higher premiums to keep the policy in force or reduce the death benefit. Additionally, policyholders may need to manage their policy more actively to ensure that it continues to meet their needs over time.

Overall, universal life insurance can be a good choice for those who want permanent life insurance with flexibility and control over their premiums and death benefit, as well as the potential for tax-deferred growth on their cash value.