Updated: January 21, 2025
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Universal life insurance might be the right choice if you want lifelong coverage with flexible premium payments, death benefit options and cash value growth.
The best universal life insurance comes from companies known for their financial stability, product variety and customer satisfaction: State Farm, Mutual of Omaha, Prudential, Guardian and MassMutual.
Best Universal Life InsuranceBest Universal Life Insurance Companies
Joint and survivorship policies save on premiums
Valuable riders available for an extra cost
Three types of universal life insurance to choose from
Unavailable in Massachusetts
MoneyGeek’s take: State Farm is the best universal life insurance option overall because of its #1 customer satisfaction ranking, excellent reputation, superior financial strength and robust universal life policy choices.
State Farm is J.D. Power’s winner for individual life insurance customer satisfaction, with a score of 822 out of 1,000. It outperformed 20 other insurers in communication, customer interaction, product offerings and statements, proving its strong reputation for quality life insurance.
State Farm offers individual universal life, joint universal and survivorship universal life policies. Joint universal life covers two people — such as spouses or business partners — and pays out when each person dies. Survivorship universal life pays only after the second spouse dies, often used to offset estate taxes or build generational wealth. Insuring two people with one policy is typically more affordable than separate policies.
Along with flexible payments and coverage amounts, State Farm offers riders to tailor a universal life policy to your needs. You can add term life insurance for your children and spouse. The guaranteed insurability option allows you to buy more life insurance with no health questions or medical exams on certain dates.
With flexible care benefits, you can access a portion of the death benefit to pay for long-term care expenses. The waiver of premium for disability riders will pay your premiums if you're completely disabled for six months or longer.
Policy Types
Accelerated death benefit at no extra cost
Two indexed universal life policies to choose from
Downside protection prevents negative returns
Available only through agents
MoneyGeek’s take: Mutual of Omaha is the best indexed universal life insurance company because its policies can be tailored to fit your needs, with downside protection to avoid negative market returns.
Mutual of Omaha offers two types of indexed universal life (IUL) insurance with market return protection. If the market index is negative, your returns are guaranteed not to go below zero, offering peace of mind for those seeking higher cash value growth without the risk of losses that could cause the policy to lapse.
The Life Protection Advantage IUL policy guarantees coverage up to age 90 or older, as long as premiums meet the no-lapse guarantee minimum. It includes an accelerated benefits rider, allowing access to some death benefits if diagnosed with a terminal illness, and a guaranteed refund option for a guaranteed refund if you surrender the policy on specific dates.
The Income Advantage policy also offers market-indexed interest crediting to build cash value, with downside protection if the market underperforms. It focuses more on cash value growth but still provides a safety net if the market index drops.
Policy Types
Several riders available for policy customization
No-lapse guarantee included
Prospective and performance reports available online
Quotes and coverage only available through financial professionals
MoneyGeek’s take: Prudential is the best variable universal life insurance company. It offers individual and survivorship variable policies, including several riders and no-lapse guarantee provisions.
Prudential has three options for variable universal life (VUL) insurance, all with a no-lapse guarantee if minimum premiums are paid and requirements are met. The VUL Protector is best for those with moderate investment risk and moderate return expectations.
PruLife Custom Premium II focuses on long-term growth and suits high-risk, high-reward individuals, with short-term no-lapse guarantees to protect against market downturns. PruLife SVUL Protector allows you to choose market risk and investment options, making it ideal for leaving a legacy or funding a business or charity with a second-to-die permanent life insurance policy.
Each policy offers a range of riders to customize coverage. Riders include living benefits for chronic or terminal illness and overload protection to prevent a lapse if large loans are taken.
SVUL Protector also offers estate protection, which increases the death benefit if both insureds pass before the fourth policy year. This plan also offers enhanced cash value for business owners and a guaranteed policy split feature in case of divorce. VUL Protector and PruLife Custom Premium II include the enhanced cash value rider, along with children's term life and enhanced coverage for accidental death or disability.
Policy Types
Guaranteed minimum interest rate of 3.5%
Offers all types of universal life
Generous underwriting guidelines for pre-existing conditions
No guarantee on variable universal life
MoneyGeek's take: Guardian offers the best universal life insurance with a guaranteed interest rate of 3.5% and growth potential.
Guardian offers some of the best guaranteed interest rates for universal life insurance. Its minimum interest rate will always be at least 2%, which can increase yearly based on market conditions. Currently, its minimum is 3.5%.
Unlike most insurers, Guardian offers guaranteed interest rates on all types of universal life policies except variable universal life. This makes Guardian a strong choice for those unsure about the risks of universal life insurance.
Guardian also has flexible underwriting, allowing those with pre-existing conditions to qualify for competitive pricing. Healthy applicants may be eligible for accelerated underwriting, which requires no medical exam or lab work.
For those seeking up to $5 million in coverage or those between rating classes, Guardian offers the Expanded Standard Program, which may lower premiums by placing applicants in a better rating class.
Policy Types
Multiple payment options
No cap on coverage with proven financial need
Cigar smokers can qualify for non-tobacco rates
Quotes and applications available only through financial professionals
MoneyGeek’s take: MassMutual has the best payment flexibility, with the option to change payments monthly or as needed to meet your financial and policy goals.
MassMutual offers exceptional payment flexibility for universal life policies, allowing policyholders to adjust payments anytime, even monthly. The only requirement is maintaining enough cash value to prevent the policy from lapsing if payments are reduced.
Understanding universal life insurance is essential to keeping your policy active, even with MassMutual's no-lapse guarantee. While rider options are limited, all policies include a free accelerated death benefit rider, which provides access to part of the death benefit if you're diagnosed with a terminal illness.
MassMutual also offers group universal life insurance through employers, a rare feature. Employees can benefit from group rates and keep the policy at the same rate if they leave the company.
Policy Types
Life insurance costs depend on factors like age, health and coverage amount. The table below provides sample rates for a $500K universal life insurance policy for healthy nonsmokers.
Age | Premium for Average Male | Premium for Average Female | |
|---|---|---|---|
1. | 30 | $158 | $147 |
2. | 40 | $242 | $220 |
3. | 50 | $366 | $324 |
4. | 60 | $541 | $498 |
These rates reflect averages from five major universal life insurance providers for healthy nonsmoking men and women with average BMIs, covering up to age 100.
A universal life policy provides permanent life insurance coverage, unlike term life insurance, which lasts for a set period. While similar to whole life insurance, universal life typically offers lower premiums and greater flexibility with costs and coverage.
Universal life insurance coverage pays a death benefit to your beneficiary and includes a cash value savings component. This cash value grows over time and can be used to fund premiums, take out loans or make withdrawals. You’ll receive the cash value minus surrender charges if you surrender the policy.
You have four universal life (UL) insurance options to choose from. Each UL policy type offers different features and investment opportunities, allowing you to tailor your life insurance to match your long-term financial strategy.
Guaranteed universal life insurance offers coverage flexibility, allowing decreases or increases, but removes the investment component. While it may include minimal cash value growth, its focus is maintaining coverage without building significant savings. Often called no-lapse guarantee universal life, it's the most affordable universal life insurance option.
Indexed universal life insurance links the cash value account to stock market indexes like the S&P 500 or Nasdaq Composite. Market fluctuations impact the cash value, with policies often including a minimum interest rate guarantee and a return cap. Without these safeguards, poor returns could require higher premiums to keep the universal life policy from lapsing.
This permanent life insurance allows for decreases and increases in coverage amounts and premium payments. It also has a cash value element that grows with time. The interest rate of a universal life insurance policy is tied to the stock market and can go up and down, but the funds aren't actively invested.
A variable policy works like indexed universal life but with more investment options for the cash value. The account is structured like mutual funds, using bonds and stocks to grow the value. A floor and ceiling cap on investment returns may exist, like indexed universal life. If not, large premiums may be required after poor market performance to keep the policy in force.
When selecting the policy, compare the different types of universal life insurance to choose one that best meets your financial goals and coverage needs.
Group life insurance is a type of policy offered to groups, typically by employers as part of a benefits package. Many companies provide it as term life insurance.
However, some companies may provide permanent plans like group universal life insurance, which combines the advantages of universal life insurance with group coverage accessibility. It offers flexible premiums and a cash value component at a lower cost. Though not as prevalent as group term life insurance, group universal life insurance attracts employers seeking more comprehensive benefits under more favorable terms than individual policies.
Universal life insurance has several advantages, including:
Understanding the benefits of universal life insurance helps determine if it fits your needs and circumstances.
Universal life insurance may not suit everyone seeking permanent coverage. Consider these disadvantages before choosing a plan:
If you're considering universal life insurance, review the policy documents thoroughly to understand the plan's fees, charges and specifics.
With so much flexibility built into these plans, finding the best universal life policy to meet your needs can take more effort. Understanding how to choose the best universal life insurance plan can help you find an ideal life insurance policy.
Determine what you want your policy to cover. Is it a few years of salary, college costs or enough for your spouse to raise your children? Calculate the total for these expenses — your liabilities. Then subtract assets like savings, retirement accounts or other life insurance policies. The result is the amount of life insurance you need.
Before requesting universal life insurance quotes, decide how much you can afford for premiums. Work with your agent to find coverage within your budget, noting that universal life policies allow flexible payments and adjustable coverage over time.
Your approach to cash-value growth — conservative or aggressive — can guide you and your agent in selecting the best universal life policy. A guaranteed interest rate policy suits conservative strategies, while indexed or variable universal life may work better for those seeking aggressive growth and confident in managing the risks.
Universal life insurance is the most complex type, offering so much flexibility. Consult an agent to discuss your goals and needs, ensuring you choose the right policy for your situation.
Getting personalized universal life insurance quotes from different companies is essential when looking for the best policy. Each company offers unique benefits and investment options, so the "best" policy varies based on individual financial needs, goals and risk tolerance.
Comparing quotes helps identify the policy offering the most value for your situation. Working with experts to fully understand each quote ensures you choose the best universal life insurance policy that meets your long-term financial goals.
Life insurance companies consider several factors to determine universal life premiums. Here are the most common factors that affect the cost:
These all make up the cost of insurance. Administrative and premium expenses are deducted when you pay your universal life insurance premium. The insurance cost is paid next, and then the rest goes into the cash value account.
Not all riders are available for universal life policies; options may vary by company. Here are the most common free and paid riders offered on universal life insurance plans:
Adding optional riders can enhance your universal life insurance benefits, but each comes with a cost that increases your premiums. Carefully assess which riders align with your needs and financial goals to ensure the benefits justify the extra investment. Understanding the characteristics of a universal life insurance policy and its riders will help you decide which enhancements are worth including.
We answer the most common questions about universal life insurance to help you determine the best policy for your needs.
Universal life insurance is a type of permanent life policy with flexible premiums and adjustable death benefits. It includes a savings component that grows tax-deferred, making it ideal for those who want to adjust their coverage and premiums as their financial situation changes.
While you’re alive and paying premiums, or once the policy is paid in full, the cash value savings account will grow based on the type of universal life insurance you have. Upon your death, your beneficiary will receive the death benefit amount at the time of your passing.
Not all companies offer universal life insurance. Some provide only term life, while others offer whole life as their permanent solution. If you're looking for the best universal life insurance plans, consider State Farm, Mutual of Omaha, Prudential, Guardian and MassMutual.
Universal life insurance offers lifetime coverage with flexibility in the death benefit and premiums. You can build cash value, and some policies offer features like a no-lapse guarantee and minimum interest rate guarantees. You can use the cash value to pay premiums, make withdrawals, take out a loan or cash it out if you no longer need the policy.
Universal life insurance isn’t a "set it and forget it" policy, especially for those without guarantees. Poor market returns could lead to higher premiums to keep the policy active. Building cash value takes time and may not perform as well as other investments. If the policy isn't regularly monitored, there's a risk of underfunding, which can cause it to lapse.
A universal life policy may be a good choice for those seeking lifetime coverage with flexible premiums and the potential to accumulate cash value, depending on their financial goals and needs.
Flexible universal life insurance offers increased adaptability by allowing policyholders to adjust premiums and death benefit amounts as their financial situation changes. This flexibility sets it apart from traditional universal life policies, which have more rigid structures with fixed premiums and benefits. While all flexible universal life policies are a form of universal life insurance, not all policies offer the same level of customization.
Both universal life and whole life insurance provide permanent coverage, cash value growth and death benefits. However, universal life offers more flexibility, allowing you to adjust premiums and the death benefit and invest the cash value for potential faster growth. Whole life insurance has fixed premiums and coverage, offering predictability. While whole life is more straightforward, universal life requires closer monitoring to ensure it remains active and maximizes its potential.
Universal life insurance can be confusing, but we help simplify the process to find the best policy at the best price. Our rankings are based on data from trusted sources like J.D. Power and Associates and our in-depth research, including real sample quotes.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a 5-time Jeopardy champion!
He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
