Universal Life (UL)

Permanent life insurance with flexible premiums and an adjustable death benefit. More knobs to turn than whole life.

Universal life is permanent coverage with flexibility built in: within limits, you can adjust your premium payments and even your death benefit as your life changes.

The policy has a cash-value account that earns interest and pays for the internal cost of insurance each month. Pay more than the minimum and the extra builds cash value; pay only the minimum and, if the cost of insurance outpaces the account, you may need to add money later to keep it in force.

That flexibility is the appeal and the risk — an underfunded UL policy can quietly get into trouble in later years, so it’s worth reviewing periodically rather than setting and forgetting.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.