Universal life insurance is permanent life insurance — that is, it remains in force for your whole life. But universal life insurance has an important difference from other types of permanent insurance: it provides a flexible premium.

That means that the policyholder decides how much to put in above a set minimum. By extension, the policyholder also determines the face amount of the policy.

Universal life insurance policies accumulate cash value — cash value that grows tax deferred. Guarantees are based on the claims-paying ability of the issuing company.

You can use the funds to pay for college or to supplement your retirement income. With a universal life insurance policy the payment premiums are flexible. When your finance get tight you can pay less and when you want to increase the policy’s cash value or death benefit you would pay more.

This form of life insurance can build cash value for you. You can use the funds to pay for college or to supplement your retirement income.

A plus to purchasing a universal life insurance policy is that the death benefit is payable to beneficiaries tax free to help meet the needs of those still living.