Universal life insurance is mostly similar to life insurance. It provides most of the benefits of whole life insurance combined with the benefit of savings and low premiums like in term life insurance. Universal life insurance can be really beneficial because of the fact that it has the combined benefits of both types of life insurance policies. The top five benefits of universal life insurance policy are:

1. Flexibility in premiums: The insurance policy allows you to change the premiums you are paying according to the situation of your finances. If you aren’t able to pay the initially decided premium, then you can ask your insurance provider to reduce your premium amount. The final death benefits you will be receiving on your universal life insurance will reduce accordingly.
2. Tax benefits: Universal life insurance has tax-deferred payments on its premium. This feature allows you to save money on a tax until you are in a financial position to pay it off. Usually, the tax is paid from the money which is received. This can help you save money and add to your policy or just keep it as savings. The tax has to be paid on cash that is withdrawn above the limit of the policy.
3. Cash value: Universal life insurance policy helps you build cash value. It allows you to make payments in a way that suits your financial situation. If you pay higher premium initially you can gradually reduce your payments. The policy allows you to withdraw cash when you are still alive. This means that you can finance your dreams of buying a home or sending your child for higher education with ease. The amount of money which is present will determine your withdrawal amount.
4. Death benefits are tax-free: The death benefit that you receive at the end of your policy is tax-free. The death benefit is received after the demise of the policyholder or the expiry of the term of the policy. The benefit is the cash value built up by the premiums paid.
5. It provides lifetime coverage: Having the benefits of term life insurance, it provides flexibility and ease. But it also has the benefits of whole life insurance and thus provides coverage for your whole life. This policy is very useful who wants to build a substantial insurance while keeping their finances flexible. It is a fairly smart choice.