Why Have Universal Life Insurance? 
One reason to have Universal Life Insurance is because it can be a low cost way of having lifetime coverage . Some UL policies are designed with very low cash value , so that your premium goes to keeping the policy in effect for a long time , vs building up cash value . If you plan to never borrow from your policy , using Universal Life for permanent coverage can be a cost effective choice . Another good use for Universal Life Insurance is retirement income . Using Indexed Universal Life , you can over fund your policy and then borrow from it during your retirement years . Because IUL takes advantage of modest market gains , but protects you from losing more than you started with , Indexed Universal Life can be a favorable retirement financial product . Finally , UL has the advantage of being adjustable . In essence , one policy could be adjusted to meet the differing needs over one policy holder 's lifetime . This is a big plus over Term life insurance , that is very rigid . 