Best Universal Life Insurance 2025

Before purchasing life insurance, it’s crucial to know which features to look for when comparing the best life insurance companies. Whether you're focused on flexible coverage or long-term financial growth, understanding the types of policies available — such as a universal life insurance policy — can help you make an informed decision.

Learn more about the top life insurance companies and how to compare universal life insurance options.

Life insurance ensures that your loved ones are financially protected when you're gone. It's designed to support dependents such as your spouse, children, or other family members.

There are two main categories of life insurance:

• Term Life Insurance: Offers coverage for a fixed time (10, 20, or 30 years) at a guaranteed rate.
  
  

• Whole and Universal Life Insurance: Provides lifetime protection, often with a savings or investment component.

Universal life insurance is increasingly popular among people seeking flexibility, investment potential, and lifelong security — especially those using tools like a universal life insurance cost calculator to budget intelligently.

Whole life insurance is a form of permanent coverage that pays a guaranteed death benefit and builds cash value over time. It's great for people who want fixed premiums and predictable benefits. However, for those seeking more control over premiums and investments, a universal life insurance policy may be more appropriate.

A universal life insurance policy offers flexibility in premium payments and death benefits. It also builds cash value that can be used during your lifetime. Unlike whole life insurance, you can adjust how much and when you pay, making it easier to align with your financial situation.

Many people start with a universal life insurance cost calculator to estimate how their age, coverage amount, and payment schedule will affect overall premiums and value growth.

This type of policy is especially appealing for individuals looking for affordable universal life insurance that can adapt over time.

Here’s a breakdown of the most common variations:

Permanent Universal Life Insurance

These policies offer lifelong coverage with the flexibility to increase or decrease premiums and coverage amounts. A portion of your premium builds tax-deferred cash value, which you can borrow against or withdraw later.

Indexed Universal Life (IUL)

An IUL policy links cash value growth to the performance of a stock index (e.g., S&P 500), allowing you to benefit from market upswings without the full downside risk. This type of permanent universal life insurance is great for those who want both protection and market-linked growth potential.

Variable Universal Life Insurance

These policies allow you to invest your cash value in mutual funds and other market-based vehicles. While this approach carries more risk, it also offers greater earning potential. Variable universal life insurance is suited for those with an appetite for market-based returns and a long investment horizon.

When you compare universal life insurance options, look closely at the investment options, caps, fees, and minimum guaranteed returns.

Universal life insurance provides a range of benefits:

• Flexibility: Adjust your premiums and coverage as your financial needs change.
  
  

• Cash Value Accumulation: Grow wealth inside the policy on a tax-deferred basis.
  
  

• Lifetime Coverage: As long as premiums are paid, coverage does not expire.
  
  

• Control: Choose how to use your policy's cash value — from retirement income to emergency funds.

For budget-conscious shoppers, there are also affordable universal life insurance options with simplified underwriting or no medical exam.

A universal life insurance policy can be ideal for:

• Individuals who want long-term coverage with the ability to modify their plan over time
  
  

• Families looking to build wealth while maintaining protection
  
  

• Business owners and estate planners managing long-term financial strategies
  
  

• Anyone using a universal life insurance cost calculator to forecast policy performance and affordability

Whether you're early in your career or approaching retirement, the flexibility of universal life makes it worth considering.

While employer-provided life insurance is a great benefit, it's often not portable or sufficient for long-term needs. Individual coverage — such as a universal life insurance policy — ensures you're covered regardless of job changes and can be tailored to match your evolving financial goals.

Ask yourself:

• How much will your family need to replace your income?
  
  

• What debts, education costs, or retirement gaps must be addressed?
  
  

• How much can you afford monthly?

Use a universal life insurance cost calculator to estimate realistic premiums and how they align with your long-term strategy. Then compare universal life insurance plans from leading providers to find the best fit.

Universal life policies may require medical exams or detailed health questionnaires. However, some affordable universal life insurance plans are available with simplified or no underwriting — especially useful if you’re older or have health conditions.

Choosing the best universal life insurance is about more than just picking a provider — it’s about flexibility, affordability, and long-term financial growth.

We recommend starting with a universal life insurance cost calculator to estimate your coverage needs. Then you can compare universal life insurance policies side by side. Whether you’re considering indexed or variable universal life insurance, the right policy can protect your family while helping you build lasting value.

* Rate based on female, age 50, $5,000 in coverage

** The total amount of all AGL Guaranteed Issue Whole Life Insurance policies on any person cannot exceed $25,000 in the aggregate.