What type of premium do both Universal Life and Variable Universal Life policies feature?

Universal Life and Variable Universal Life insurance policies are designed to provide policyholders with flexibility in how they pay their premiums. This flexibility is a key feature that distinguishes these types of policies from more traditional life insurance options.

In both Universal Life and Variable Universal Life policies, the premiums are not set at a fixed amount that must be paid at a specific time; instead, policyholders can adjust the amount and timing of their premium payments based on their financial situation and the policy's cash value. This means that the insured can choose to pay more in certain periods or allow for lower payments during others, as long as they adhere to the policy's minimum premium requirements to keep the policy in force.

The ability to change the premium payments is especially beneficial for individuals whose financial situations may fluctuate, providing them the ability to adapt their insurance costs accordingly. By understanding this feature, prospective policyholders can better appreciate how these policies work and make informed decisions based on their personal financial planning and life circumstances.