Is Universal Life Insurance The Same As Whole Life? 
Both Universal life -LRB- UL -RRB- and Whole Life -LRB- WL -RRB- are permanent life insurance policies . They are designed to provide coverage for a lifetime . The computations necessary to make a whole life insurance policy are complicated but it wasnt until the introduction of computers that companies could even think about providing a UL policy . The cash value of a WL policy is held by the company in the companys general funds . The cash value for a UL policy is held by the company in a separate fund -LRB- that might have different results because of investment policy . -RRB- So the first difference is that the UL does not have the guarantees of cash accumulation that the WL policy has , however , it might do even better . The second feature of a UL policy is that it is flexible . Premium deposits can be started , reduced , suspended , re-started or modified throughout the life of the policy . This flexibility can be a great asset or a tremendous liability . The liability comes when owners realize that they have not maintained adequate cash values and the rapidly increasing cost of mortality is going to destroy their cash values . 