What Is Universal Life Insurance And How Does It Work? 
Universal life insurance is a form of permanent/cash value life insurance known for it 's flexible premium and adjustable -LRB- downward in most cases -RRB- death benefit . Like all permanent products , the policy is driven by cash values -LRB- a reserve -RRB- in the policy that covers policy expenses . The policy holder also has access to this cash value either as a withdrawal or as a policy loan . Universal life insurance is also very well known for it 's transparency , as all expenses are readily available to the insured if he or she wishes to see them . 