Universal Variable Life (UVL) insurance in New York State (NYS) combines lifelong protection with investment flexibility, allowing policyholders to adjust premiums, death benefits, and cash value allocation. This type of policy offers both a death benefit for beneficiaries and an investment component, making it an attractive choice for individuals looking for customizable life insurance with growth potential.
A primary benefit of UVL insurance is its flexibility. Policyholders can adjust premium payments (within certain limits) based on their financial situation, enabling them to increase or decrease the policy’s cash value. This flexibility also extends to the death benefit, which can be adjusted as needs evolve, providing adaptability over a lifetime. The investment component allows policyholders to allocate cash value among various investment options, including stock and bond sub-accounts. This feature can lead to cash value growth, although it also carries some risk as performance depends on market conditions.
NYS residents have additional options to customize UVL policies with riders, such as a No-Lapse Guarantee, which ensures coverage even if cash value fluctuates, and an Accidental Death Benefit, which increases the payout in case of accidental death. With these options, UVL insurance provides a versatile solution for NYS residents seeking lifelong coverage with investment potential and adjustable features.