Universal Life Insurance

Universal life insurance offers a fixed interest rate and guarantees that your life insurance coverage will be around as long as you will be, as long as premiums are paid.

With universal life insurance, you can provide a permanent death benefit to those who depend on you while earning cash value. Universal life insurance offers a fixed interest rate and guarantees that your life insurance coverage will be around as long as you will be — as long as premiums are paid.

Want to learn more?

• 5 minute guide to universal life insurance (PDF)
• Fees and charges
• Choosing a beneficiary

Advantages and disadvantages

A universal life insurance policy has the flexibility to adjust to your changing needs. It's more transparent than other types of fixed life (life insurance that doesn't invest in the stock market) because you can watch your account value increase as it earns interest and decrease when charges are deducted.

Your policy's cash value earns interest based on the company's current interest rate, and this growth is tax-deferred. You can access your cash value almost anytime.¹

However, universal life insurance also puts greater responsibility on you — you are in charge of making the coverage changes that are right for you, and you take on the investment and mortality risks.

As your personal situations change (i.e. marriage, birth of a child or job promotion), so will your life insurance needs. Take care to ensure this type of product is suitable for your long-term needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges associated with it that include costs of insurance that vary based on the insured person’s gender, health and age, and has additional charges for riders that customize a policy to fit your individual needs.

¹Assumes contract qualifies as life insurance under Internal Revenue Code (IRC) Section 7702. Most distributions are taxed on a first-in/first-out basis as long as the contract remains in force and meets the non-MEC (Modified Endowment Contract) definitions of IRC Section 7702A. Loans and partial surrenders from a MEC will generally be taxable, and if taken prior to age 59 ½, may be subject to a 10% tax penalty. Loans and partial surrenders will reduce cash value and any death benefits payable.

Universal life insurance products

Products may not be available in all states.

• Nationwide ULtimate Universal Life^SM
• Nationwide^®Universal Life Protector
• Nationwide^® Universal Life (BEL)
• Nationwide^® YourLife^SM SUL

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¹Assumes contract qualifies as life insurance under Internal Revenue Code (IRC) Section 7702. Most distributions are taxed on a first-in/first-out basis as long as the contract remains in force and meets the non-MEC (Modified Endowment Contract) definitions of IRC Section 7702A. Loans and partial surrenders from a MEC will generally be taxable, and if taken prior to age 59½, may be subject to a 10% tax penalty. Loans and partial surrenders will reduce cash value and any death benefits payable.

Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

Guarantees and protections are subject to Nationwide's claims-paying ability. Life insurance is issued by Nationwide Life Insurance Company, or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

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