Universal life gives you protection for the people you love, as well as the flexibility to choose the amount of your death benefit, how much you pay in premiums, and when you pay them (within certain limits). Cash value earns interest every day, and expenses are taken out monthly. As long as there is enough cash value to pay your policy's monthly expenses, your coverage will continue. It will also build cash value that can be used for anything, anytime.

How they're similar:

• Both are types of permanent life insurance.

• Both build cash value.

How they're different:

• Whole life comes with a guaranteed death benefit, while universal life comes with a flexible death benefit.

• Whole life comes with set premiums, while universal life comes with flexible premiums.

Universal life gives you flexibility to choose how much you pay in premiums and when you pay them (within certain limits) as your circumstances change. While you may eventually have to pay higher premiums to keep your coverage, that flexibility can make it easier to keep your insurance policy in force if your earnings vary like if you're self-employed, own a business, or earn money through royalties. Ask an advisor if universal life is right for you.

You can take money out of your policy as a withdrawal up to the amount of the premium you've paid in so far without paying taxes. You can also take a loan against your cash value or use the policy's cash value as collateral for a loan from a bank. If you choose to surrender your entire policy, you can take all of its cash value, but you'll also be surrendering your coverage.

Your policy's cash value is an asset that you can use for anything, anytime. It can be used for unexpected emergencies, like a home repair or a business investment. You can take money out of your policy as a withdrawal up to the amount of the premium you've paid in so far without paying taxes. You can also take a loan against your cash value or use the policy's cash value as collateral for a loan from a bank. If you choose to surrender your entire policy, you can take all of its cash value, but you'll also be surrendering your coverage.

Universal life gives you flexibility to choose how much you pay in premiums and when you pay them (within certain limits) as your circumstances change. While you may eventually have to pay higher premiums to keep your coverage, that flexibility can make it easier to keep your insurance policy in force if your earnings vary like if you're self-employed, own a business, or earn money through royalties. Ask an advisor if universal life is right for you. 

At the time of the insured's death, the beneficiary will receive the death benefit. The value of the death benefit will be greater than the policy's cash value. Still have questions? Connect with an advisor.

Yes, this is pool of money is called cash value. The cash value of a policy is an asset that you can use for anything, anytime. It can be used for unexpected emergencies, like a home repair or a business investment. You can take money out of your policy as a withdrawal up to the amount of the premium you've paid in so far without paying taxes. One of our advisors can give you more details.

Yes. You can take a policy loan. Interest is charged on the loan, but there is no financial underwriting, so you can borrow at any time against your policy, and the repayment terms are flexible. You can repay on your own terms or allow the loan interest to be added to the loan. It's important to know that your death benefit will be reduced by the amount of the loan until it's repaid, and the loan must be carefully managed to avoid any tax consequences.

No, it cannot. However, whole life insurance does. While not guaranteed, you can take the dividend as cash, use it to pay premiums, or buy more coverage. Ask an advisor which insurance is right for your needs and goals.