Permanent coverage with flexible premiums
Universal life (UL) is permanent coverage with a twist: you can adjust your premium and death benefit over time within limits. Its cash value grows at an interest rate set by the insurer, making it more flexible than whole life.
With UL, you can pay more in good years to build cash value, or less (even skip payments) if the cash value can cover the policy’s costs. That flexibility is powerful — but it also means you have to monitor the policy. If cash value runs too low and you underpay, the policy can lapse.
Standard UL credits interest at a rate the insurer declares, with a guaranteed minimum floor. Variations tie growth to a market index (see indexed universal life) or to investments (variable universal life), trading more upside for more complexity and risk.
Free licensed guidance in 5 languages — or quote yourself online.
Both are permanent. Whole life fixes your premium and guarantees cash-value growth; universal life lets you flex premiums and the death benefit, with cash value tied to a declared interest rate. UL offers more flexibility; whole life offers more certainty.