Flexible Premium Universal Life
The key characteristic of a universal life policy is flexibility. Within limits, you can choose the amount of insurance and the premium you will pay. The policy stays in force as long as its value is enough to pay its costs and expenses. The policy value is "interest-sensitive," which means the cash value grows in response to the general financial climate.
The flexible premium feature of the policy allows you to change your premium payments, depending on the policy value and your current financial needs. For example, you may be able to skip a premium payment or decrease/increase your premium payments.
Lowering the death benefit and raising the premium will increase the growth
rate of your cash value. Raising the death benefit and lowering the premium
will slow the growth of your cash value. If insufficient premiums are paid,
the policy could lapse without value before it reaches a maturity date.
The maturity date is the date your policy ceases and its cash surrender
value is payable if the policyholder is still living. Therefore, it is your
responsibility to consistently pay a premium that is high enough to ensure
that your policy's value is adequate to pay the policy's monthly cost. The
company must send you an annual report and notify you if you are in danger
of losing your policy because of insufficient value.