Bear in mind that the advertised rates are paid on the money that's left after commissions, administrative expenses and the cost of insurance are deducted. The ads often don't make that clear. Size up the surrender charges. They can make canceling the policy especially expensive in its early years. If a company sells more than one universal life policy, compare them carefully.
Many companies sell two generic types.
In one the death benefit is limited to the policy's face amount until the cash value has built up considerably over a couple of decades or so, at which time the cash value begins to be added to the death benefit. In the other option, the cash value is added to the face amount right from the start and the death benefit rises gradually as the years go by. The latter policy will carry higher premiums. Tools will open in a new window. The Kiplinger Washington Editors, Inc.