What is one potential advantage of a universal life insurance policy?

A universal life insurance policy is designed to offer policyholders greater flexibility compared to traditional life insurance products. One of its main advantages is the ability to adjust premium payments. This means that policyholders can decide how much to pay in premiums each month or year, within the guidelines set by the policy. This flexibility allows individuals to increase or decrease their premium payments based on their financial situation, which can be particularly beneficial during changing life circumstances.

Moreover, universal life insurance also accumulates cash value over time, which policyholders can borrow against or withdraw under certain conditions. This aspect enhances the flexibility of the policy, making it suitable for those who may want to have access to cash without having to surrender their life insurance coverage.

In contrast, fixed premiums provided by whole life policies do not allow for such adjustments, and while guaranteed death benefits are important, they are standard in many life insurance products, not just universal policies. Limited paperwork may simplify the process, but it is not a distinct advantage of universal life insurance.