Universal Life

Universal Life Insurance

Universal Life Insurance is a life insurance policy with a savings element and affordable premiums. Universal Life is one of the most flexible types of insurance, with typical policies providing a variety of premium options and flexible death benefits.


Universal Life consists of two main components: the cost of insurance (COI) amount and the cash value (savings component). The cost of insurance is the minimum amount of premium required to keep the policy in force. Universal Life Insurance allows for flexibility in its premium payments, enabling you to vary the premium depending on your circumstances. Premiums collected in excess of the COI are accumulated as the cash value of the policy. Similarly to a savings account, the cash value within your policy will earn interest based on the current market rate or minimum interest rate.


As your cash value accumulates, you may access it within limits without affecting the overall death benefit.  This provides you with liquidity from your policy. In addition, if your circumstances change, you may leverage the policy and borrow against the accumulated cash value.


Universal Life offers a variety of premium options including flexible premiums, enabling you to adjust how much premium you pay each year, and allowing you to access the cash value to offset the premium as well. Depending on the cash value of your policy, you may even skip a premium payment.


Universal Life Insurance enables you to build wealth while assuring you have appropriate life insurance in place.

Benefits / Highlights
  • Affordability
  • Flexible premium payment
  • Adjustable death benefit
  • Accumulate cash value
  • Guaranteed interest rate
  • Adjustable coverage
  • Leverage the policy
Uses for Universal Life Insurance

Universal Life is a hybrid life insurance policy which combines elements of term life insurance with investment savings options, enabling you to build savings and providing liquidity while protecting your life and family from financial burden.


Universal Life has become so widespread because of its flexibility. Unlike Whole of Life which has fixed premiums, Universal Life allows for much greater flexibility over a wide range of areas including: in premium payment frequency and amount, the ability to increase or reduce the face value, and withdrawal rights out of the policy depending on your financial needs.


Universal Life provides an option for life insurance death benefit while building savings that can be cashed out or even utilized to pay for the premium of the policy as life conditions change. Once you’ve accumulated enough cash value in the policy, called being “paid-up” – you can choose to fund the remaining premium payments from the policy itself. Conversely, you may let the cash value accumulate to be used in your later years to augment or replace other sources of income.


Besides protection, Universal Life is useful for future investment planning. The cash value is a vessel for saving and can be withdrawn at any time or received at the policy maturity.


At INLE Risk Management we can help you choose the right Universal Life policy from our partner insurers. We can also help structure a bespoke Universal Life Insurance policy that addresses both your protection as well as investment needs.

  • AIA
  • AXA
  • Mass Mutual (YF Life)
  • Prudential
  • Sun Life
  • Swiss Life
  • TransAmerica