verifiedCite
While every effort has been made to follow citation style rules, there may be some discrepancies. Please refer to the appropriate style manual or other sources if you have any questions.
Select Citation Style

What is universal life insurance?

Universal life insurance is permanent life insurance that can provide lifetime coverage as long as the policy remains adequately funded. It offers flexible premiums, an adjustable death benefit, and a cash value component. Depending on the type of universal life policy, cash value may earn interest at a fixed rate, track a market index, or be invested directly.