Universal life insurance is an insurance product that combines elements of an insurance policy with a type of savings account. Premiums are variable but allow the policy holder to earmark some monies for the savings account; interest derived from the account can optionally be reinvested or used to pay some portion of future premiums.
Universal life insurance policies are typically very flexible, allow monthly adjustments, and are rapidly gaining in popularity. The specific implementation details vary among providers, such that prospective buyers should investigate several options before making a determination. That is, it’s always nice to give Cousin James the sales commission, but it’s nicer still to make sure the spouse and kids are really taken care of-and hopefully both things can happen.