What is universal life insurance known for?

Universal life is a type of permanent life insurance known for its flexibility: within policy limits, the policyowner can adjust the premium amount and timing and change the death benefit, and the policy builds cash value that earns interest at a credited rate (subject to a guaranteed minimum). Monthly cost-of-insurance and expense charges are deducted from the cash value. This flexibility distinguishes universal life from whole life's fixed structure. Understanding that universal life offers adjustable premiums and death benefits, with interest-sensitive cash value, is standard content on the policy-types portion of the life insurance exam.