Flexible permanent protection

Lifetime coverage that adapts to your changing needs.

Universal life insurance offers permanent protection with flexible premiums, adjustable death benefits, and cash value growth. Unlike whole life's rigid structure, universal life lets you adjust your policy as your life changes.

Whether you want to maximize cash value, minimize premiums, or balance both, licensed agents help you design a policy that works for your situation.

Call 1-800-INSURANCE Get a free quote

A happy family with a daughter hanging on her father's back walking in the park they are all happy because we just purchased a new life insurance to protect his family

Talk to an insurance guide

Licensed pros walk you through quotes, discounts, and next steps in minutes.

3 types

of universal life: Fixed, Indexed (IUL), Variable (VUL)

8-12%

typical IUL cap rates on S&P 500 index

floor on indexed universal life—you can't lose in down markets

Universal Life Explained

What is universal life insurance?

Universal life insurance is a type of permanent life insurance that provides lifelong coverage with more flexibility than traditional whole life. The key difference is control: you can adjust your premium payments and death benefit within certain limits, and your cash value grows based on current interest rates rather than a fixed guarantee. This flexibility makes universal life appealing for those who want permanent protection but anticipate changing needs over time.

There are three main types of universal life insurance. Fixed (or traditional) universal life offers a minimum guaranteed interest rate on cash value with additional crediting based on current rates. Indexed universal life (IUL) ties cash value growth to a market index (like the S&P 500) with downside protection—you participate in gains up to a cap but don't lose money when markets decline. Variable universal life (VUL) lets you invest cash value in subaccounts similar to mutual funds, offering higher growth potential but also the risk of loss.

The flexibility of universal life comes with responsibility. Unlike whole life where premiums are fixed, universal life requires monitoring to ensure your policy remains funded. If cash value depletes due to insufficient premiums or poor performance, your policy could lapse. Working with an experienced agent helps you understand these mechanics and choose the right type of universal life for your goals and risk tolerance.

How it works

Getting life insurance is easier than you think

Whether you're a first-time buyer or reviewing your coverage, we make it simple to protect your family.

Step 1

Share your goals and preferences

Tell us about your protection needs, flexibility preferences, and whether you prioritize cash value growth, premium flexibility, or both.

10 minutes

Step 2

Compare universal life options

Review fixed, indexed, and variable universal life illustrations from top carriers. See how different funding strategies affect long-term performance.

Detailed projections

Step 3

Design your policy with expert guidance

Work with a licensed agent to customize your death benefit, premium schedule, and rider options. Complete underwriting and start your coverage.

Personalized design

Key decisions

What you need to know

Understand the important factors when choosing universal life insurance.

Flexible premium payments

Pay more when you can to build cash value faster, or reduce payments during tight times. As long as your policy stays funded, you maintain coverage.

Adjustable death benefit

Increase coverage as your responsibilities grow or decrease it later in life. Adapt your protection to match your actual needs.

Multiple growth options

Choose fixed rates for stability, indexed strategies for market-linked growth with protection, or variable accounts for maximum growth potential.

Tax-advantaged cash access

Borrow against your cash value tax-free for any purpose—emergency funds, education, business opportunities—while your death benefit remains intact.

Guided help

Guidance for life's biggest decisions

Life insurance decisions affect your family for years to come. Our licensed agents take the time to understand your situation and help you make the right choice.

Help determining which type of universal life fits your goals and risk tolerance
Detailed illustrations showing how different funding strategies affect performance
Guidance on indexed caps, participation rates, and variable subaccount options
Ongoing policy review to ensure your coverage stays properly funded

Call 1-800-INSURANCE Compare quotes online

Ready to get started? We're here to help.

Woman standing by her mailbox with the mail signs on the back of the paper airplane. She is sending an insurance policy contract and coverage.

How much coverage do you need?

Universal life coverage amounts depend on your permanent protection needs—final expenses, legacy goals, estate planning, or lifetime income replacement. Many people combine universal life with term insurance: term for temporary high-coverage needs (mortgage, kids' education) and universal life for the amount you'll always need. Your agent can help model different scenarios to find the right balance of coverage and premium.

Life insurance at every stage

30s-40s

Excellent time for universal life—lock in lower cost of insurance rates while healthy. IUL is popular for this age group: long time horizon maximizes index-linked growth potential. Consider overfunding in early years to build cash value that can support lower premiums later.

45-55

Balance growth potential with stability. IUL remains attractive for retirement accumulation. Fixed universal life offers more predictable performance for conservative planners. Consider using universal life for supplemental retirement income via tax-free loans.

55-65

Focus shifts to legacy planning and income distribution. Fixed universal life provides more certainty. If using IUL, consider reducing equity exposure. Work with an agent to model sustainable withdrawal strategies that won't deplete your policy.

65+

Universal life can still make sense for estate planning, charitable giving, or pension maximization strategies. Fixed universal life is typically preferred for its predictability. Review existing policies to ensure they're adequately funded for lifetime coverage.

Understanding cash value

Universal life cash value grows differently depending on the type you choose. Fixed universal life credits interest at a rate declared by the insurer (with a guaranteed minimum, often 2-3%). Indexed universal life (IUL) tracks a market index—when the index goes up, you earn a portion of the gain (subject to caps, often 8-12%); when it goes down, you don't lose money (floor of 0%). Variable universal life (VUL) lets you allocate cash value to investment subaccounts that can grow or shrink with markets. All types allow tax-free policy loans against your cash value, but remember: outstanding loans reduce your death benefit and withdrawals can be taxable if they exceed your premium basis.

Questions?

Common questions about universal life insurance

What's the difference between universal life and whole life insurance?

The main difference is flexibility. Whole life has fixed premiums, guaranteed cash value growth, and a set death benefit—you know exactly what you're getting. Universal life lets you adjust premiums and death benefits within limits, and cash value growth varies based on interest rates or market performance. Whole life is simpler and more predictable; universal life offers more control but requires more attention.

What are the different types of universal life insurance?

There are three main types: Fixed (traditional) universal life offers a guaranteed minimum interest rate plus potential for higher crediting rates. Indexed universal life (IUL) ties growth to a market index with downside protection—you can't lose money in a down market. Variable universal life (VUL) lets you invest in subaccounts like mutual funds with higher growth potential but also risk of loss.

Can universal life insurance lapse?

Yes—this is an important difference from whole life. If your cash value depletes (from insufficient premiums, high cost of insurance, or poor investment performance), your policy can lapse. Regular policy reviews help ensure you're paying enough to keep coverage in force. Most policies allow you to increase premiums or reduce death benefits to prevent lapse.

Is indexed universal life (IUL) a good investment?

IUL isn't an investment—it's insurance with a growth component. The downside protection (0% floor) and participation in market gains (with caps) make it attractive for tax-advantaged cash accumulation. However, caps limit your upside, fees reduce returns, and the complexity requires understanding. IUL works best as part of a diversified financial plan, not as your only savings vehicle.

How much premium flexibility does universal life offer?

Significant flexibility within limits. You can pay more than the target premium to build cash value faster, pay less in some years (using cash value to cover costs), or even skip payments if enough cash value exists. However, there are minimum and maximum premium limits set by the IRS to maintain life insurance tax treatment. Your agent can help you understand the flexibility range for your policy.

Universal Life Insurance guides and resources

Dive deeper into universal life insurance topics with our expert guides and comparisons.

Ready to protect your family with universal life insurance?

Get personalized quotes in minutes. Our licensed agents are here to help you find the right coverage.

Call 1-800-INSURANCE Get quotes online

Explore other life insurance options

Compare different types of life insurance to find what works best for your situation.