There's three versions of it: whole life, universal life, and variable universal life. Universal life combines the ability to build savings at the same time as providing you with a life insurance policy. As with any insurance product, it's important you understand how a universal life policy works. In fact, borrowing is the … Its life insurance products are term life, whole life and universal life. About a year and a half ago my financial advisor sold me on a universal life insurance policy as a way to "diversify my assets" and take advantage of a "tax-deferred investment vehicle". The company offers products through financial advisors and is headquartered in Milwaukee, Wisconsin. A variable Universal Life Insurance contract is one, which has two parts. Is Universal Life Insurance worth it? Variable universal life insurance; (VUL) may be a risk based policy. It really depends on why the insured person is purchasing the insurance and how much investment experience they have. Universal life insurance typically comes with higher premium payments compared to a term life option. I say maybe a risk policy; because you could elect to fund the fixed account, but the expense loads are so costly, that would be a mistake and not worth it. A universal life policy didn’t offer the guarantees of the whole life policy, but it did offer flexibility and potential growth comparable with the money market accounts that were so enticing to consumers. If you’re considering buying a universal life insurance policy, here are the rules you need to follow: Rules for universal life insurance: 1. If you have dependents, life insurance may be worth the premiums you’ll pay. You better have an insurance need. If an insurance company is going to buy a derivative on the S&P 500 Index and the realistic expectation is that it’s not going to go up any more than 7%, there’s not going to be enough value appreciation in that contract to create an interest rate anywhere near 7% on an indexed universal life insurance policy. Let's put all of those in a category. I once encountered a situation where a 26-year-old female, a 26-year-old single female, was sold a $1 million universal life policy. Loans and Withdrawals . Insurance. Enter universal life insurance. Net worth calculator Budget calculator Budget ... they buy what the agent recommends — things like variable universal life insurance with an annuitized benefit option. Pros Universal life can be an economical alternative to traditional whole life, and in some instances it costs less. If you're interested in buying whole life, you might want to look into universal life. 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