What Is Universal Life Insurance? Flexible Lifetime Coverage With Cash Value Growth
What Is Universal Life Insurance? Flexible Lifetime Coverage With Cash Value Growth
The Most Customizable Form of Permanent Life Insurance
Universal life (UL) insurance combines lifelong coverage with flexible premiums and a cash value component that earns interest. Unlike whole life insurance, universal life gives you more control over how and when you pay and how your policy’s savings grow.
At OnePoint Insurance Agency, we help you navigate this complex but powerful coverage option. Whether you’re planning for retirement, business protection, or leaving a legacy, we’ll help tailor a UL policy that grows with you.
What Universal Life Insurance Covers
Universal life insurance provides a guaranteed death benefit and the potential to build savings through tax-deferred interest. Features include:
Flexible Premiums: Adjust your payments within limits, based on your goals and cash value
Adjustable Death Benefit: Increase or decrease coverage (with underwriting)
Tax-Deferred Cash Value: Grows at a minimum interest rate, with potential to earn more
Permanent Protection: Coverage lasts your entire life, as long as the policy is funded
Loan and Withdrawal Access: Tap into your cash value when needed
Types of UL policies:
Guaranteed UL (GUL): Affordable lifelong coverage with little cash growth
Indexed UL (IUL): Market-linked growth (e.g., S&P 500)
Variable UL (VUL): Sub-account investments (higher potential, more risk)
What Universal Life Doesn’t Cover
Requires active management to avoid lapse
Growth may vary based on index/market performance
Policy fees may reduce early-year growth
Loans/withdrawals reduce the death benefit if unpaid
We monitor your UL annually to keep it aligned with your evolving goals.
Who Should Consider Universal Life Insurance?
Universal life is ideal if you are:
A high-income professional or business owner
A family with fluctuating income
Focused on legacy/wealth transfer
Planning for retirement and want cash value
Already maxing out your 401(k) or IRA and want supplemental tax-deferred savings
Example: A 45-year-old might use IUL to grow cash value and leave a legacy.
Frequently Asked Questions
How is universal life different from whole life?
Whole life is fixed and stable. Universal life is flexible and performance-based.
Can I skip a premium payment?
Yes, if your cash value is high enough. But a lapse is possible if it drops too low.
What’s the difference between Indexed UL and Guaranteed UL?
IUL tracks index performance. GUL offers lifelong death benefit with minimal growth.
Can I borrow from my policy?
Yes. You can access cash value through loans or withdrawals (with impact on benefit if unpaid).
Do I need to review my policy?
Absolutely. UL is not “set and forget.” Let OnePoint help you adjust as needed.
How OnePoint Can Help
At OnePoint, we help you:
Understand UL policy projections and fees
Choose the right carrier, rider, and interest structure
Compare term vs permanent coverage
Monitor performance year after year
Use UL to meet retirement, business, or estate goals
We’re local, independent, and policy-smart.
