Policy Types

What is Flexible Life Insurance?

This article discusses the flexibility of universal life, variable universal life, and adjustable life insurance plans; plans that allow you to change certain elements in response to your life needs.

Flexible Life Insurance

If you hear someone talking about having a flexible life insurance policy, chances are they’re referring to certain policy types that may include universal life, variable universal life, or an adjustable life insurance plan. And while each of these types of policies bring to the table their own unique benefits and features, they have in common the flexibility to provide a variety of options to policyholders.

Simply put, a flexible life insurance policy can allow you to change certain components of your plan, including the face amount, premium, and coverage period, in response to your changing needs and circumstances.1

The following are a few of the basics regarding the flexibility of universal life, variable universal life, and adjustable life insurance plans.

Universal life insurance.

Universal life (UL) insurance just may be the quintessential life insurance policy for people wanting a lifetime coverage with the flexibility to adjust premiums and coverage as their needs change. In addition, most UL policies accumulate cash value over time, allowing you to borrow any un-loaned amount from your accumulated cash value (up to the maximum limit) for any reason.

Variable universal life insurance.

Variable Universal Life (VUL) brings its own unique blend flexibility, protection, and investment options to the table. A VUL can protect your loved ones in the event of your death, while providing the long-term opportunity for tax-deferred accumulation of cash value that can be used while you’re still alive.

It is the flexibility of a VUL that makes it useful for a variety of different financial planning purposes, and for both personal and business applications. For example, personal uses for VUL may include: family income protection, estate planning, charitable gifting and developing a supplemental source of retirement income. Business uses may include: key person coverage, funding buy/sell agreements or special executive compensation arrangements.

Adjustable life insurance.

An adjustable life policy gives you the flexibility to adjust the face value, premium, and length of coverage without having to completely change policies. It can also give you the flexibility to convert to any other form of insurance – such as going from term life to a whole life policy.

For more information on different types of life insurance policies and the various options associated with them, visit the Protective Life Insurance Learning Center. Please note that loans against a life insurance policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.

1. http://www.investorwords.com/103/adjustable_life_insurance.html

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Flexible Life Insurance

Did you know that there are certain life insurance policies that can give you greater flexibility? When it comes to flexible life insurance, you have a few choices. This article presents various types of flexible life insurance policies that will allow you to make the best choice for your needs. For more information, visit our learning center.