When Does Universal Life Insurance Make Sense? 
Guaranteed no lapse Universal Life makes sense when someone wants a policy that will stay in effect for life at the lowest possible price . This type of policy has very little cash value and is a good way to get permanent coverage at a reasonable price . At the other extreme , Indexed Universal Life and Variable Universal Life can generate a lot of cash value . So IUL and VUL make sense in for providing retirement income . All Universal Life makes sense when someone wants one policy that can be adjusted for the different stages and needs of one 's entire life . 