Universal life insurance stands out for its flexibility. The money you pay goes into a fund to pay for the cost of your insurance protection. The balance is invested in a tax-advantaged manner. You choose from a range of investment account options based on your goals and your risk tolerance level.
The growth of your investment account depends on the amount of money invested and the return obtained. The money in the fund can be used to make future payments or be a source of savings for the future. You can borrow from this money, withdraw the money, or leave it with loved ones who are designated as beneficiaries. If you borrow or withdraw money from your policy, the cash surrender value and the amount your beneficiary will receive on your death will be reduced accordingly.