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Enjoy flexible premiums and protection with Universal Life insurance

Have your life insurance needs changed? Universal Life insurance may be right for you.

For some people, flexibility is the key to financial security. If you share this belief, you probably also feel that as your needs change your life insurance coverage should change.

What is Universal Life insurance?

Universal Life insurance offers a combination of flexible premiums, access to cash value and the possibility of flexible, lifelong coverage. If an increased level of control over premiums and benefit amounts is important to you, Universal Life insurance may be the right choice for you.

How can flexible premiums help with the unexpected?

As with every life insurance policy, the Universal Life policyholder pays premiums. From each premium payment, the insurer collects a stated percentage to cover expenses and the cost of insurance. The remaining amount is then applied to the policy's account value, which grows tax-deferred at a competitive rate of interest.

This is where the possibility of a flexible premium arises. You can pay more into the policy than what is required. Then, after the premium expense charge is deducted, the remainder will go into the account value to earn interest. Conversely, if you need to skip a payment or two, your policy won't lapse if there is sufficient account value in the policy to cover expenses; however, this is subject to policy conditions and minimums. This flexibility lets you respond to opportunities or disruptions in your financial situation without having to restructure or repurchase your life insurance policy.

Flexible death benefits can change based on need

Another advantage of Universal Life is the ability to increase or decrease the amount of coverage within certain guidelines. This occurs in two ways:

  • Increasing your life insurance coverage. Over time, you may find that your permanent life insurance needs have changed, for example you purchased a larger home or had another child. Universal Life insurance allows you to increase your coverage without purchasing a new policy. Typically, additional premium would be necessary to keep the policy in force to continue lifetime coverage. Keep in mind that increases must be applied for and are subject to underwriting.
  • Decreasing your life insurance coverage. If your financial responsibilities change, Universal Life can allow you to decrease your coverage without purchasing a new policy. The amount of the decrease is up to you, as long as it's within certain policy guidelines.

The flexibility of Universal Life insurance

Universal Life offers the possibility of a lifetime benefit and a guaranteed interest rate on the accumulated cash value, with the flexibility of premiums and death benefits.

For more information about whether Universal Life is right for you, discuss your needs with a State Farm® agent, or check out other options, such as Term Life Insurance, Return of Premium Term Life Insurance or Whole Life Insurance.

If you are interested in a quote on this type of life product, please contact a State Farm Agent.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.


This is only a general description of coverages and is not a statement of contract. Details of coverage or limits vary in some states. All coverages are subject to the terms, provisions, exclusions and conditions in the policy itself, and in endorsements.


Policy Series Info

State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
Bloomingto, IL


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