Universal life is a combination of term and whole life. The insurance is provided under a term policy, but a portion of your premium is invested in an interest-bearing account. If the policy holder cancels the policy, the cash value will be returned. Universal life is less expensive than whole life and can help to keep your premiums from going up just as you get older. Once you have purchased life insurance don't just put the policy away and forget about it.
Annual checkups are important.
Your needs evolve and the effects of inflation and interest rate changes can make a policy ineffective. Whole life policy premiums, unlike term life, will stay the same and it will build up a cash value. You can borrow against or surrender your policy and receive the cash value in a lump sum. Initially whole life will cost more per month than term. Life insurance will never be less expensive than it is right now.