Both universal and whole life insurance are forms of permanent life insurance, designed to last for the length of the insured’s lifetime. With whole life insurance, premiums are fixed and regular. The death benefit is guaranteed, and the cash value grows at a fixed rate.
With universal life insurance, premiums can be adjusted up or down, which can increase, decrease or even deplete the policy’s death benefit. The cash value grows at a variable market rate, which can increase or decrease over time (a base rate typically is guaranteed).