Why might someone choose a "universal life" insurance policy?

Choosing a universal life insurance policy can appeal to individuals seeking flexibility in their insurance coverage and premium payments. One of the defining features of universal life insurance is its ability to allow policyholders to adjust their premium payments and death benefit amounts according to their financial situation and changing needs. This flexibility is beneficial for those who may have fluctuating incomes or wish to adapt their insurance as their life circumstances evolve.

With the option to increase or decrease premiums and adjust coverage amounts, policyholders can tailor their policies to better meet current financial goals or obligations. This adaptability can make universal life appealing for long-term financial planning, ensuring that coverage can remain relevant over time.

In contrast, policies that mandate fixed premiums or exclude withdrawal options do not offer the same level of flexibility, making them less suitable for individuals who prioritize the capacity to manage their insurance based on changing needs.