How Does A Universal Life Insurance Policy Work? 
The Universal Life policy is a way to combine term insurance with an investment feature under one plan . You have flexibility of premium . The more you put in , the more your cash value grows . You can skip premiums or put less into the plan as long as there is enough cash in the plan to maintain the insurance cost . In order to make sure the death benefit will be available in your older years you MUST make sure you do not under fund your policy . As you get older the cost of insurance increases . If the cash fund does not maintain enough to pay the insurance cost the policy will lapse . You will receive an annual statement each year , make sure you review this with your agent to make sure your policy is performing as planned . 