Investment options generally include mutual funds that invest in stocks, bonds and cash equivalent investments. Universal life insurance Universal life insurance is similar to whole life insurance. The difference is that your premium is flexible. How much and how often you pay depends on the policy's cash value and the size of the death benefit you choose. A flexible premium can be ideal when you need to reduce your coverage.
Some policyholders choose to reduce coverage as their children grow up.
With fewer dependents living at home, the need for a larger death benefit may not be necessary. Universal life policies also build cash value with a guaranteed minimum return. The premium amount is flexible based on the size of your death benefit and cash value policy. Plus, you control the invested portion of your premium. This money is placed into a separate account from your insurance company's investment portfolio.