Universal life insurance (sometimes called universal insurance) gives you lifelong protection and cash value you can use for anything, anytime, plus the flexibility to adjust your policy along the way as your life and needs change. It lets you choose the amount of your death benefit and how much you pay in premiums, as well as when you pay them.
UL gives you permanent life insurance coverage with premiums that are lower than you would have with whole life. You have a flexible death benefit (as opposed to guaranteed) which lets you choose to keep the amount level or increase it (within limits).
With UL, you'll have the flexibility to choose how much you pay in premiums, and when you pay them. You can choose to pay more in some years and less in others—which can be a huge help if you have an irregular cashflow, are self-employed, own a business, or earn money through royalties. As long as there is enough cash value to pay your policy's monthly fees and expenses, your coverage will generally continue.1
UL policies build cash value that you can use for anything, anytime, usually without owing taxes. You can use it to cover unexpected emergencies, a home repair, college tuition, or a business investment.2 However, your policy could lapse if the net accumulated value of the policy is less than the monthly policy charges.
Questions about universal life insurance? We've got answers.
UL gives you protection for the people you love, as well as the flexibility to choose the amount of your death benefit, how much you pay in premiums, and when you pay them (within certain limits). Cash value earns interest every day, and expenses are taken out monthly. As long as there is enough cash value to pay your policy's monthly expenses, your coverage will continue. It will also build cash value that can be used for anything, anytime.2Find out more about how UL works..
How they're similar:
Both are types of permanent life insurance.
Both build cash value.
How they're different:
Whole life comes with a guaranteed death benefit, while universal life comes with a flexible death benefit.
Whole life comes with set premiums, while universal life comes with flexible premiums.
Yes. You can take a policy loan. Interest is charged on the loan, but there is no financial underwriting, so you can borrow at any time against your policy, and the repayment terms are flexible. You can repay on your own terms or allow the loan interest to be added to the loan. It's important to know that your death benefit will be reduced by the amount of the loan until it's repaid,2 and the loan must be carefully managed to avoid any tax consequences. Want to find out more? Connect with an advisor.
Your policy's cash value is an asset that you can use for anything, anytime. It can be used for unexpected emergencies, like a home repair or a business investment. You can take money out of your policy as a withdrawal up to the amount of the premium you've paid in so far without paying taxes. You can also take a loan against your cash value or use the policy'vs cash value as collateral for a loan from a bank. If you choose to surrender your entire policy, you can take all of its cash value, but you'll also be surrendering your coverage.2 Ready to get started on your policy? Connect with an advisor.
At the time of the insured's death, the beneficiary will receive the death benefit. The value of the death benefit will be greater than the policy's cash value. Still have questions? Connect with an advisor.
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What types of universal life insurance policies are offered by Northwestern Mutual?
Custom Universal Life
Custom Universal Life gives you flexibility when it comes to choosing the amount of your death benefit and your premium payment schedule. This type of policy insures one person and builds cash value, tax deferred.
Survivorship Universal Life
Survivorship Universal Life is similar to Custom Universal Life, except that it insures two people and pays the death benefit upon the death of the second person.
Make a plan for tomorrow today.
When you work with Northwestern Mutual, we listen to the goals you have and design a financial plan tailored specifically to your life. Universal life insurance is a flexible tool that could be an important part of your plan, giving you lifelong protection while helping you meet more of your financial goals. Find out more about how we plan.