How does universal life insurance differ from whole life?

Universal life (UL) insurance is a permanent policy with greater flexibility than whole life. Key features: (1) flexible premiums — within limits, the policyowner can adjust premium payments, (2) adjustable death benefit — the face amount can be increased (with new underwriting) or decreased, (3) cash value that grows at current interest rates declared by the insurer, subject to a guaranteed minimum. UL gives the policyowner more control but also more responsibility: insufficient premium payments can deplete cash value and cause the policy to lapse. Variable Universal Life (VUL) is a related product where cash value is invested in subaccounts (like mutual funds), introducing investment risk to the policyowner. UL is suitable for clients who want permanent coverage with flexibility.