How is universal life insurance different from whole life?

Universal life generally offers more flexibility to adjust premiums and, subject to underwriting, the death benefit, while whole life typically has fixed premiums and a fixed death benefit.

Can my universal life policy lapse?

Yes. If the accumulated cash value and premiums paid are not enough to cover the ongoing cost of insurance, the policy can lapse.

Are loans against cash value taxable?

Loans and withdrawals can have tax consequences depending on the circumstances; consult a tax professional before borrowing against or withdrawing from a policy.

What affects the cost of universal life insurance?

Cost is generally influenced by factors such as age, health, weight, occupation, tobacco use, and the specific policy design and coverage amount.

Can I change my death benefit amount later?

Some universal life policies allow death benefit adjustments over time, subject to underwriting approval and the policy's terms.

Life Insurance

Universal Life Insurance

Flexible permanent coverage that can adjust as your life changes

Universal life insurance is a type of permanent coverage that generally offers more flexibility than whole life, letting premiums, cash value contributions, and in some cases the death benefit be adjusted over time.

Talk With an Advisor Request a Callback Start a Guided Quote

Mature couple reviewing universal life insurance paperwork together in their kitchen.

In plain language

With universal life insurance, the insurer typically divides your premium into two parts: the cost of insurance and a cash value, or savings, component. As long as enough is paid in to cover the cost of insurance and keep the policy in force, premiums can often be adjusted to fit changing needs and budgets.

A Bleu Sky's Insurance Solutions agent in Tampa, Florida can walk you through how a specific universal life policy's flexibility, interest crediting, and costs work before you enroll.

Who this may be for

People who want permanent coverage with more premium flexibility than whole life
Those who anticipate their coverage or budget needs may change over time
People interested in a policy with a cash value component tied to a credited interest rate

What it generally covers

A death benefit that can potentially be adjusted, subject to underwriting and the policy's terms
A cash value component that can accumulate based on premiums paid and interest credited
The ability to adjust premium payments within limits set by the policy

Coverage, costs and availability vary by policy, carrier, eligibility and location. The details above are educational and are not a description of any specific plan.

Not sure whether universal life insurance fits your situation?

Consultations are offered at no cost and without obligation. Submitting a form does not enroll you in coverage.

Talk With an Advisor Call (813) 360-1884

Important choices and considerations

How Premiums and Cash Value Work

Premiums paid above the minimum cost of insurance generally accumulate as cash value, which can sometimes be used to help cover future premiums. The policy generally remains in force as long as the minimum cost of insurance continues to be covered, whether through premiums or accumulated cash value — coverage is not guaranteed regardless of payment, and can lapse if funding is insufficient.

Interest Crediting

The insurer sets a minimum interest rate that applies to the cash value; if the policy's underlying performance exceeds that minimum, additional earnings may be credited to cash value, depending on the policy.

Loans and Withdrawals

Policyholders may be able to borrow against a portion of the cash value. Loans and withdrawals can reduce the death benefit and the available cash value, and may have tax consequences — a tax professional can advise on your specific situation before you borrow against or withdraw from a policy.

Potential limitations and exclusions

Flexible premiums can mean the policy underfunds and lapses if minimum costs are not covered over time
Cash value growth depends on interest crediting and policy costs, and is not guaranteed to reach any particular amount
Loans and withdrawals reduce the death benefit and cash value and may create tax liabilities

How Bleu Sky's helps

Explain how a specific universal life policy's cost of insurance, cash value, and interest crediting work together
Help you understand the funding levels needed to keep a policy in force long-term
Compare universal life against whole life and term options for your goals

What happens next

1
Tell us what you need
Share your situation in a short conversation. No sensitive information required.
2
Review your options
A licensed advisor walks you through the choices available to you in plain language.
3
Choose with confidence
Decide at your own pace. We stay available after you enroll.