Universal Life

Universal life insurance is designed to provide lifetime coverage - with the added benefit of cash value growth and flexibility.

Universal Life vs. Term Life

Term life is designed for temporary income protection.

Universal life is designed for long-term planning and flexibility.

Both have a place — the key is understanding your goals.

Fixed Universal Life

Flexible Protection With Long-Term Potential

Universal life insurance is designed to provide lifetime coverage with the added benefit of cash value growth and flexibility.

Unlike term life, which covers you for a specific number of years, universal life stays in place as long as premiums are maintained. It also builds cash value over time — giving you options beyond just a death benefit.

It’s protection with adaptability.

What Is Universal Life?

Universal life is a permanent life insurance policy that includes:

  • Lifetime coverage

  • Adjustable premium options

  • A tax-advantaged cash value component

  • Flexible death benefit structures

    You have the ability to adjust premiums (within policy limits) and structure coverage to fit your financial goals.

How Cash Value Works

A portion of your premium goes toward building cash value inside the policy.

That cash value grows over time based on:

  • The policy structure

  • Crediting methods (depending on policy type)

  • Performance of the underlying index (for indexed universal life policies)

    The growth is tax-deferred, meaning you do not pay taxes annually on gains within the policy.

Policy Loans: Accessing Your Cash Value

One of the most powerful features of universal life insurance is the ability to take policy loans.

How Policy Loans Work

You may borrow against your accumulated cash value without:

  • Credit checks

  • Traditional loan applications

    Immediate taxation (when structured properly)

  • The policy remains in force, and the borrowed amount is secured by the policy itself.

Why People Use Policy Loans

Policy loans can be used for:

  • Business opportunities

  • Emergency expenses

  • Supplementing retirement income

  • Debt strategies

  • Major purchases

    There are no restrictions on how you use the funds.

Who Universal Life May Be Right For

Universal life is often considered by individuals who:

  • Want lifetime coverage

  • Want flexibility in premiums

  • Are interested in long-term cash value accumulation

  • Want access to tax-advantaged growth

  • Are building retirement income strategies

It is not a one-size-fits-all solution — but for the right person, it can be powerful.

frequently asked questions

Is universal life more expensive than term?

Yes, premiums are typically higher because coverage lasts for life and includes cash value accumulation.

Can I change my premium?

Most universal life policies offer flexibility within certain guidelines. We structure it carefully from the start.

Are policy loans taxable?

Generally, loans are not taxable as long as the policy remains in force and is properly structured.

What happens if I stop paying?

Depending on available cash value, the policy may remain active temporarily. Long-term underfunding can cause lapse risk.

Is universal life an investment?

Universal life is life insurance first. While it has growth potential, it should be structured primarily as protection with strategic financial benefits.

Ready to protect what matters most?

It only takes a few minutes to find out what coverage is right for you.

Contact Us

The Tubbs Agency is a trusted insurance agency based in Ardmore, Oklahoma, proudly serving clients in Ardmore, Durant, Ada, Madill, Sulphur, Davis, Lone Grove, Tishomingo, Kingston, Marietta, Texoma, and surrounding Southern Oklahoma communities.

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