Universal life insurance is quite similar to whole life insurance. They are both permanent policies, and they both offer you the option of cash value. However, there is one key difference. The cash value in whole life insurance policies depends on a fixed percentage you and your company agree on. Conversely, the cash value in universal life insurance policies is connected to a specific stock. What this means is that your cash value is pretty much left to luck with universal life insurance. If the market underperforms, the cash value could be in serious jeopardy. But if the stock does well, the cash value could be greater than you’ve ever imagined.