There is a minimum premium amount that you are required to pay or the policy will lapse and no longer be in force. Most policy owners will pay more than the minimum required amount. The money that is paid above the the premium costs will go into a side cash account which can be invested however the policy owner wishes. There are many tax saving reasons why many people choose to do this. Depending on your policy’s accumulated cash value, it may be used to pay your premiums or left to accumulate further over time.
Universal Life insurance can be a very complex, important financial product and it is recommended that you consult with us to see if this product will meet your needs.