What distinguishes flexible premiums in universal life insurance?

Flexible premiums in universal life insurance are characterized by their ability to be adjusted based on the policyholder's needs. This flexibility allows policyholders to vary the amount and timing of their premium payments. For instance, a policyholder can pay higher premiums in years when they have additional financial resources and lower premiums in years when their finances might be tighter. This adaptability makes universal life insurance uniquely appealing to those who want more control over their insurance expenditures and cash value accumulation.

The nature of these flexible premiums stands in stark contrast to fixed premiums found in whole life insurance, which remain constant throughout the life of the policy. Moreover, the idea that premiums are only paid at renewal time or that they are inherently lower than whole life premiums does not capture the essence of the flexibility offered by universal life insurance. Instead, the key benefit lies in the ability to tailor the payment structure to the policyholder's current financial circumstances.