What is a common feature of Universal Life insurance?

A common feature of Universal Life insurance is its ability to accumulate cash value. This type of insurance is designed to provide flexibility in both premium payments and death benefits, allowing policyholders to not only ensure a death benefit for their beneficiaries but also to build cash value over time. The cash accumulation component is a critical aspect of Universal Life policies, as it grows on a tax-deferred basis, providing financial planning benefits for the policyholder.

The cash value can be accessed through policy loans or withdrawals, making it a valuable resource for policyholders during their lifetime. This feature distinguishes Universal Life from other types of insurance that either do not offer cash value accumulation or have more rigid structures regarding premium payments and benefits. The flexibility to adjust premiums and death benefits while still benefiting from cash value growth is a significant advantage for individuals looking for a customizable life insurance solution.