Universal is an umbrella term used to describe most life insurance policies that have some type of investment instrument (i.e., stocks, bonds…) included in the policy. Another type of this policy is variable life policies. Various carriers offer numerous options with these policies.
Any returns on the investment part of these policies can be used to pay premiums, or they may be returned to the policyholder as a dividend. Most of these policies stay in effect and pay a face value balance at the time of passing.
These products are attractive to individuals who want more control of their investments including their insurance policies. Another attractive feature is the ability to adjust the policy with the changes in life without purchasing another policy and going through underwriting.