Why it matters
Universal life lets the owner change the amount or timing of premiums within limits. That flexibility helps when income changes, but it carries risk. If the cash value is too low to cover monthly charges, the policy can lapse. Buyers should ask for a current illustration and check how long coverage lasts at the planned premium. Minimum interest guarantees and charges differ by carrier. Variations include indexed and variable universal life, which link growth to an index or investment accounts.
Source: iii.org