What Is A Universal Life Insurance Policy? 
Universal Life insurance is a combination of term life insurance and a tax-deferred savings plan paying a variable return . There is a guaranteed interest rate and cost of insurance set which stipulates how long the policy is guaranteed to last . This can be as long as age 121 with some UL products , so that the policy is then considered permanent insurance . Some Universal Life products , especially Indexed Universal Life or Variable Universal Life , are designed to generate cash value . They may or may not have a guaranteed lifetime no lapse feature . Universal Life is an adjustable and flexible policy that can often be tweaked to meet the needs of the insured over a lifetime . 