To provide for long-term needs, such as to provide survivor income for a spouse or minor children. Other uses could include paying off debt and paying estate taxes. Universal Life Premiums and death benefit are flexible. The monthly cost of insurance and administrative charges are deducted, the balance of the premium going to cash values. Similar to Permanent above.
Cash values can increase based on current interest rates.
Variable Life Premiums may be flexible. Death benefit may be flexible. Cash accumulation is directly affected by the performance of the investment accounts selected. For long-term obligations as shown under Permanent. Client may wish to manage own death benefit and cash value account.