What is a key feature of a Universal Life Insurance policy?

A key feature of a Universal Life Insurance policy is its flexibility in premium payments and the way it allows for cash value growth. Universal Life is designed to provide both a death benefit and an investment savings element, where part of the premium payments goes towards building cash value, which can grow over time with interest.

The unique aspect of this type of insurance is that it allows policyholders to adjust their premiums and the amount of coverage as their financial needs change. Monthly charges are deducted for the cost of insurance, which includes the term payment. Additionally, the cash value component earns interest, which can increase the investment potential of the policy over time. This flexibility makes Universal Life Insurance attractive to those who want a policy that can adapt to changing circumstances and potentially provide a growing cash value.