What is typically the feature that distinguishes universal life insurance from other types?

Universal life insurance is primarily distinguished by its flexibility in both premium payments and death benefits. This structure allows policyholders to adjust their premiums from month to month, offering a significant degree of financial maneuverability. As their financial situations change, individuals have the option to increase or decrease their premium payments, or even skip payments if there is sufficient cash value accumulated in the policy.

In addition to adjustable premiums, policyholders have the ability to modify the death benefit amount, which can cater to changing family or financial needs over time. This adaptability is a key feature that sets universal life insurance apart from other types of life insurance, such as whole life which typically has fixed premiums and benefits, and term life which provides coverage for a specified term without any cash value accumulation. Understanding these distinguishing features of universal life insurance can help individuals make informed decisions about their insurance needs.