It can provide permanent protection along with convenient features like adjustable coverage and flexible payments. It also earns current interest on cash values-funds that are available for loans or tax-free withdrawals,** That's an important advantage over other plans such as annuities where withdrawals are treated as taxable income.

Most Universal Life policies are set up the same way, but there are some key differences that will tell you if you're getting a good deal. When you start shopping for the best plan, here are some questions you should ask:

What are the costs involved?
In Universal Life's first policy year, companies frequently charge a one-time policy fee. Consider these and other first-year charges: They could significantly affect the policy's performance, especially in the early years.

Each time a payment is made, companies generally deduct a percentage of the premium often called a front-end load. The remainder goes into the cash-value fund from which monthly insurance costs and expense charges are deducted.

*Not available in all states.
**Unless withdrawals exceed payments.
***This information appeared in the November 1983 edition of Best's Review. The results were based on a hypothetical 10% interest rate.

Does the policy pay a good rate of return?
Compare the policy's current rate of return with other prevailing rates: CDs, Treasury Bills, bonds, etc. Find out whether the company pays that rate on all or just part of the cash-value fund. When you compare illustrations, look at cash-value accumulations over 10 or 20 years. And remember, if you compare Universal Life to term-plus-investments, the investment earnings are normally subject to income taxes. Universal Life's earnings are not.

How accessible are the funds?
Once your Universal Life policy starts accumilating cash value, you should be able to borrow or make withdrawals to pay for college expenses, a business venture, a world cruise. Whatever  you need money for. Whenever you need it-before or after retirement. And unlike IRAs, you'll have much more flexibility in making contributions and withdrawals. Companies will vary in their withdrawal fees and restrictions, so be sure to ask what they are.

If you're looking for low-cost protection and a current rate of return, Universal Life from C. M. Life (a wholly owned subsidiary of Connecticut Mutual Life Insurance Company) should be at the top of your list. A.M. Best, an independent rating firm, found ours to have the largest cash-accumulation value over 20 years, compared to 90 other universal life policies.***

Finding the best buy in life insurance may not be as difficult as determining how much insurance you need and how much money to set aside. That's where a Connecticut Mutual Represenative can really help. Together you can analyze your short and long-term financial needs and answer some tough questions about your future.