Universal life insurance. Is commonly more flexible. Premiums can be added after the first premium is paid, thereby increasing the savings that also accumulate tax-deferred. The amount of coverage may be adjusted without the insured proving insurability. Borrowing is allowed.
Interest is paid according to the money market rates.
Variable life insurance. Permits the insured to decide how the savings are invested. A minimum death benefit and the money earned beyond face value are usually guaranteed. Savings accumulate tax-deferred. The cash values can decrease as the value of the chosen investment decrease.