How it works
Universal life (UL) is permanent — it covers you for life as long as premiums and cash-value requirements are met. Each premium payment is split: part covers the cost of insurance, part goes into a tax-deferred cash-value account that earns interest (or, in indexed and variable UL, is linked to market performance).
Who universal life is best for
- People who want lifetime coverage, not just a 20-year window
- Estate-planning needs (transferring wealth, paying estate tax)
- Business succession funding (buy-sell agreements, key person)
- Those maxing out other tax-deferred accounts looking for additional growth
Types of universal life
- Standard UL — cash value grows at the insurer's declared interest rate
- Indexed UL (IUL) — growth tied to a stock-market index, with caps and floors
- Variable UL (VUL) — cash value invested in sub-accounts; higher upside, more risk
- Guaranteed UL (GUL) — minimal cash value, focuses on lifetime death benefit at a lower premium
Universal vs. term life
Universal life costs 5–10x more per dollar of death benefit than term life — because it never expires and includes a savings component. Most families need term life first, and add universal life only when they have a specific permanent need. See term life →
How to apply
UL applications are more involved than term — most carriers require a medical exam and lab work. We'll guide you through it. Start a quote →