Universal Life Insurance

Last updated: December 9, 2025 Recently updated

Universal Life Insurance Guide

Flexible permanent coverage with adjustable premiums and death benefits

Not sure what coverage you need? Take our free 2-minute quiz to get personalized insurance recommendations.

What is Universal Life Insurance?

Universal Life Insurance provides essential protection for you and your family. Understanding how it works helps you make better coverage decisions.

Key Features

Coverage details and benefits
What’s typically included
Common exclusions to be aware of
Cost factors that affect premiums

Who Needs Universal Life Insurance?

Learn whether this type of coverage is right for your situation and how to determine the appropriate coverage amount.

How to Choose a Policy

Tips for comparing policies, understanding terms, and finding the best value for your needs.

Retiring Checklist - Universal life as part of estate planning
Getting Married Checklist - Long-term life insurance decisions

Life Insurance Needs Calculator - Calculate your coverage needs

Term Life Insurance - Affordable temporary coverage alternative
Whole Life Insurance - Guaranteed permanent coverage alternative

Frequently Asked Questions

Common questions about universal life insurance answered.

Data Sources

Universal life insurance data in this guide come from LIMRA (opens in new tab) , ACLI (opens in new tab) , NAIC (opens in new tab) , and insurer rate filings. Learn more about our data collection methods on our Methodology page.

Frequently Asked Questions

How is universal life insurance different from whole life?

Universal life offers more flexibility than whole life. You can adjust premium payments and death benefits within limits. Cash value growth is tied to current interest rates (or market performance for variable/indexed UL). However, this flexibility means the policy could lapse if underfunded.

What is indexed universal life insurance?

Indexed universal life (IUL) ties cash value growth to a stock market index like the S&P 500, with a floor protecting against losses (typically 0-2%) and a cap limiting gains (often 8-12%). You get some market upside without direct market risk, but caps limit growth potential.

What are the risks of universal life insurance?

Universal life can lapse if you underfund it or if interest rates remain low. Unlike whole life’s guaranteed cash value growth, UL projections are based on assumed interest rates that may not materialize. Monitor your policy regularly and be prepared to pay additional premiums if needed.