To sum it up, there are a number of advantages of universal life insurance, such as: Your coverage lasts as long as you live. You can use the money in your policy to take a premium holiday if you’re out of work or don’t have the cash to pay your premiums. You can access the money in your policy to supplement your retirement income or due to an illness. Your savings accumulate on a tax-free basis and your beneficiaries won't have to pay any tax when you die.