In how many ways can universal life policies be structured?

Universal life policies can be structured in two primary ways, which are flexible premium and death benefit options.

The flexible premium aspect allows policyholders to decide how much to pay into their policy above a required minimum, and they can also adjust their premium payments. This flexibility is a hallmark of universal life insurance, enabling policyholders to manage their cash value accumulation according to their changing financial situations.

Additionally, there are typically two death benefit options that policyholders can choose from: one based on the face amount of the policy plus the cash value, and another based solely on the death benefit amount. This choice allows individuals to tailor the insurance to their specific needs and goals.

By understanding these two ways, policyholders can effectively utilize universal life insurance to adapt to their needs over time, making it an attractive option for many.