What is a significant advantage of a Universal Life policy over a Whole Life policy?

A significant advantage of a Universal Life policy over a Whole Life policy lies in its flexibility in premium payments. Universal Life insurance allows policyholders to adjust their premium payments within certain limits, which can be particularly beneficial for individuals whose financial situations may vary from year to year. This means that they can increase or decrease the amount they pay into the policy as needed, providing more control over both their cash flow and the growth of their policy's cash value.

In contrast, Whole Life policies typically have fixed premium payment amounts and schedules, which can limit the policyholder's flexibility. While Whole Life may offer stable premiums and predictability, it does not provide the same level of adaptability for changing financial circumstances. This flexibility in Universal Life can make it a more appealing option for those looking for a responsive insurance product that can adjust to their specific financial needs over time.