Universal Life insurance is a type of permanent life insurance. It offers a guaranteed death benefit and also builds a cash value against the premiums paid. Being permanent life insurance, the premiums are to be made throughout. Universal Life insurance has a unique feature of deciding the premium rates and death benefits, making it highly flexible insurance. The cash value accumulation increases over the period. The increment is dependent on the market index performance.  

Universal life insurance is usually not recommended due to its expensive premiums. Universal life insurance usually provides coverage of $500,000. There is of withdrawing the money at any time, but it comes at the cost of a surrender fee. Universal Life Insurance is preferred by individuals with high network and particular tax requirements.