What does a universal life policy provide that a traditional whole life policy does not?

A universal life policy provides the flexibility to adjust premiums and death benefits over time, which is a significant difference from a traditional whole life policy. With whole life insurance, the premium amounts and death benefits are typically fixed; once the policy is established, they do not change. In contrast, universal life is designed to offer policyholders the ability to customize their premium payments and alter their death benefits as their needs evolve, making it more adaptable to individual circumstances and financial situations.

This flexibility can be particularly beneficial in a variety of situations, such as when a policyholder experiences changes in income or financial obligations, enabling them to adjust coverage accordingly without needing to purchase an entirely new policy. This adaptability is one of the defining features that attract individuals to universal life insurance over traditional whole life policies.