Does Universal Life Insurance Have A Cash Value? 
Yes . Universal life builds cash value that can grow based on a stated fixed interest rate , which may vary over time , but which will never be less than a guaranteed minimum interest rate . Policy costs for administrative expenses and cost of insurance are deducted from the cash value monthly . Universal life is best suited to satisfy the longer-term needs of policy-owners who want premium flexibility and cash value accumulations that reflect current fixed interest rate returns , with a guaranteed minimum interest rate . Some Universal Life policies are designed to have very little or no cash value . Called Guaranteed Universal Life , these policies are designed to not lapse even if the cash value goes to zero due to a secondary guarantee of the death benefit for periods up to lifetime . 