Universal life insurance is a permanent type of life insurance that can increase your final death benefits by methods of investments and accruing interest. Universal life insurance companies will typically use their own investment strategies to invest part of your policy which may help to increase your total policy amount.  As a policy holder, you typically have the option of following the investments the life insurance company makes to make sure that they are sound and prospering so that you are not losing any of your monies.

One of the great advantages in having a universal life insurance policy is that should you find yourself at a time where finances are strained you can typically – depending upon the company and your policy – lower your payments so that you will still be able to keep your policy.  When you lower your premium payments; however, you should be aware that typically this will also mean that you will be lowering the value of your policy as well.

Universal life insurance companies may even provide the policy holder with a guaranteed return which means that as long as you pay your policy premiums and keep your policy in good standing your policy is guaranteed to pay out.  Some universal life insurance companies may also provide you with interest and other options for your life insurance policy.  While it may be a good idea to go with an interest play, it may also be a good idea to weigh that against the possibility of interest rates changing in the economy because typically when interest rates raise then your interest that you are earning will decline.