Universal Life Insurance:

Universal life insurance is also referred to as adjustable life insurance. It allows policy owners to pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. Policy owners can also reduce or increase the death benefit of a universal life insurance policy more easily than with other types of permanent life insurance policies. Universal life insurance policies provide the certainty of a guaranteed minimum amount of death benefit, as long as premiums are sufficient to sustain that death benefit. Most universal life insurance policies will also provide a guaranteed rate of return on the policy's cash value. However, it is possible a policy will not accumulate cash value if the insurance company's administrative expenses increase, mortality assumptions are changed, investment portfolio does not perform as expected, or the policy premium payments are insufficient.