Universal Life Insurance
Universal life is permanent coverage with flexibility. Premiums can adjust, the death benefit can change within rules, and the policy builds cash value that earns interest declared by the insurer.
It is designed to protect family or business while giving you options to fund, access value later, and keep coverage in force for life. Guarantees depend on the insurer’s claims-paying ability.
How Universal Life Insurance Works
Each premium pays policy charges and the cost of insurance, with the remainder going to cash value. The insurer credits interest to that cash value at a rate it declares, subject to a contractual minimum. You can request changes to premium level and death benefit, use withdrawals or policy loans for access, and add riders for extra protection. Loans and withdrawals reduce cash value and the death benefit and can cause the policy to lapse if unmanaged.
How To Tell If You’re A Good Fit For Universal Life
- You want lifelong coverage with room to adjust funding as income changes
- You value the ability to increase or decrease the death benefit within underwriting rules
- You want the chance to build cash value that can support future needs
- You prefer an interest-credited approach rather than direct market exposure
- You need flexibility for business planning, estate liquidity, or legacy goals
Types Of Universal Life Insurance
We compare these side by side so you can see how cost, flexibility, and long-term outcomes differ.
Current Assumption Universal Life
Cash value earns a declared rate that can change. Funding discipline matters, since interest rates and policy charges influence long-term performance.
Guaranteed Universal Life
Designed to keep the death benefit in force to a selected age, often with little focus on cash value. Premiums are structured to meet secondary guarantees, which require timely payment.
Indexed Universal Life
Credits interest linked to an external index under contract rules such as caps and participation rates, while keeping a floor that is often zero.
Universal Life vs. Whole Life vs. Indexed Universal Life
Whole life emphasizes guarantees and level funding with stronger built-in commitments, typically at higher required premiums.
UL emphasizes flexibility, with performance that depends on declared or index-linked crediting and ongoing funding choices.
If you want flexibility without direct market investment, UL can be a practical middle path. If you want index-linked potential, consider IUL.
Build a Universal Life Plan With Confidence
At Matador Insurance, we compare policy types and carriers, explain funding and guarantees, and design a strategy that supports family, business, and legacy while staying manageable over time. You leave with clear steps and a plan you can keep on track.