How Does A Universal Life Insurance Work? 
Universal life is a flexible life insurance policy that can coverage your indemnification planning scenarios or can generate tax advantaged supplemental income for retirement . You pay your premium via the payment mode you select . The policy expenses are deducted from premiums paid -LRB- or cash values later on in the policy -RRB- , then the earnings from the crediting method are applied . Keep in mind that there are surrender charges , policy loan costs and two sets of rates : current company practice and contractual guarantees . The two sets of rates cover the cost of insurance , policy fee , admin charges and front end premium loads . 