In a Universal Life policy, what can the policyowner adjust?

In a Universal Life policy, the policyowner has the flexibility to adjust both the premium payments and the death benefit amount. This type of life insurance is designed to offer more control and adaptability compared to traditional whole life policies. The ability to vary the premium payments allows policyowners to pay higher or lower amounts depending on their financial situation, while still maintaining the policy's cash value and death benefits.

Moreover, policyowners can also adjust the death benefit as their needs change over time. For instance, if a policyowner has a significant life event, such as the birth of a child or changes in financial obligations, they may choose to increase the death benefit to ensure adequate protection for their dependents. Conversely, if their financial needs decrease, they might opt to reduce the death benefit to lower their premium payments.

This dual flexibility is a defining characteristic of Universal Life insurance, distinguishing it from other life insurance products where such adjustments are often more restricted.