What do universal life policies typically have that differentiates them from whole life policies?

Universal life policies are distinguished from whole life policies primarily due to their flexible premium feature. This flexibility allows policyholders to make adjustments to their premium payments, enabling them to pay higher or lower amounts depending on their financial circumstances or needs. This design can be particularly beneficial for individuals whose financial situations may vary over time, as it provides the ability to adapt their insurance coverage without being locked into a fixed payment schedule.

In contrast, whole life policies generally require fixed premium payments that remain unchanged throughout the policyholder's life. This difference in structure is a critical factor for individuals when choosing between these two types of life insurance policies, as it affects not only the cost but also the degree of control policyholders have over their investment.

While both universal life and whole life policies provide permanent coverage, guaranteed cash value growth, and insurance coverage for the life of the insured, it is the flexibility of premium payment in universal life policies that sets them apart.