Which type of life insurance provides flexibility in protection and savings options?

Universal life insurance is designed to offer both flexibility and a combination of protection and savings options. Policyholders can adjust their premiums and death benefits, allowing them to respond to changing financial needs or goals. This flexibility includes the ability to increase or decrease the death benefit and to alter premium payments, within certain limits set by the policy.

Additionally, universal life insurance accumulates a cash value over time, which can earn interest. The policyholder has the option to use this cash value in various ways, such as taking loans against it or withdrawing funds for use without surrendering the policy. This adaptability makes universal life an attractive option for individuals seeking a customized insurance solution that can grow with their needs.

In contrast, term life insurance offers straightforward coverage for a specified period without a cash value component, while whole life insurance provides guaranteed death benefits and fixed premiums, lacking the same level of flexibility. Permanent life generally refers to policies that provide lifelong coverage but doesn’t specifically denote the degree of flexibility found in universal life.