What distinguishes universal life insurance from other types?

Universal life insurance is distinguished from other types primarily by its flexible premiums and death benefits. This means that policyholders have the ability to adjust their premium payments and the amount of their death benefit based on their financial needs and goals. This flexibility allows individuals to manage their policy more actively, making it easier to adapt to changing circumstances, such as income fluctuations or evolving financial commitments.

In contrast, other types of life insurance, such as whole life insurance, generally involve fixed premiums and fixed death benefits, which do not allow the policyholder the same degree of control. Term life insurance covers the insured for a specific period and does not accumulate cash value, while some other types of life insurance may also lack the flexibility associated with universal life. Thus, the flexibility inherent in universal life insurance makes it a distinct option for those looking to tailor their life insurance coverage to their changing needs over time.