Universal Life
Universal life is basically a “Term to 100” life insurance policy. It is flexible and adaptable which also makes it complex.
Simply put, a Universal Life policy will provide for “permanent” life insurance – that is, will be in place when you die.
Typically Universal Life policies will provide for an investment opportunity, if the policyholder wishes, that will allow certain deposits to grow tax free. At the time of death these deposits, together with any growth, are paid out tax free to the beneficiaries of the policy.
Because of their unique and complex structure, as well as having significant income tax advantages, Universal Life insurance police may become a cornerstone in a Financial Life Plan.