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Last updatedJanuary 2026

Best Universal Life Insurance 2026

Get covered for the rest of your life.

Protect your family from unforeseen financial burdens with one of these top universal life insurance companies.

Reviewed by
Holly Johnson
Finance and Insurance Expert
Holly Johnson is a money and insurance expert who has covered personal finance, credit cards and insurance for over a decade. She is passionate about explaining the ins and outs of financial products to consumers, and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She lives in Indiana with her husband and children.
Finance and Insurance Expert
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Amplify Life Insurance
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Protect & grow your cash value with an IUL
  • Grow cash value you can use while you're alive
  • Grow up to 12% per year with a 0% floor
  • Amplify rated 4.8/5 stars on Trustpilot
  • Protect your family with up to $5 million
9.6
BestMoneyscore
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2
Corebridge Direct
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Universal life insurance that provides peace of mind for life
  • Reliable coverage that builds cash value
  • Dependable lifetime protection for your family
  • A trusted partner in life protection
  • Request a free, personalized quote
8.2
BestMoneyscore
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3
Ethos
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Permanent life insurance with cash value growth
  • Tax-advantaged + safe from market downturns
  • Instant approval up to $1M
  • No medical exams, just online health questions
  • Build financial security and generational wealth
9.0
BestMoneyscore
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BestMoney Total Score
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Editorial Reviews
Amplify Life Insurance
Amplify Life Insurance
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Corebridge Direct
Ethos
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Our Top Choice for Life Insurance January 2026
Most Popular On BestMoney
Amplify Life Insurance
Read Review
Protect & grow your cash value with an IUL
  • Grow cash value you can use while you're alive
  • Grow up to 12% per year with a 0% floor
  • Amplify rated 4.8/5 stars on Trustpilot
  • Protect your family with up to $5 million
9.6
BestMoneyscore
VIEW RATES

What Is Universal Life Insurance?

Universal life insurance is a type of permanent life insurance that combines flexible premiums, adjustable death benefits, and a growing cash value component. Unlike term life, a universal life insurance policy provides lifetime coverage and is often used for long-term financial planning or estate strategies.

What Are the Key Features of a Universal Life Insurance Policy?

A universal life insurance policy offers:

  • Flexible Premiums: Adjust your payments as your income or needs change
  • Adjustable Death Benefit: Increase or decrease the death benefit as life circumstances evolve
  • Cash Value Accumulation: Build savings within the policy over time
  • Lifelong Coverage: Maintain coverage as long as premiums are adequately funded

What Types of Universal Life Insurance Are Available?

There are several forms of universal life insurance:

  • Traditional Universal Life: Offers stable growth based on interest rates
  • Indexed Universal Life Insurance (IUL): Links cash value to a market index such as the S&P 500, providing growth potential with downside protection
  • Variable Universal Life: Allows investment of cash value into sub-accounts, offering higher growth with higher risk

Each type supports different goals—indexed universal life insurance tends to be popular for balance and flexibility.

What Is an IUL and How Does It Work?

An IUL, or indexed universal life insurance, ties cash value growth to a specific index, often the S&P 500. It allows policyholders to benefit from market performance while maintaining principal protection through a guaranteed minimum interest rate.

  • IUL policies have contribution caps and participation rates that affect return
  • Growth is tax-deferred, and funds can be accessed through loans or withdrawals

What Is a Max Funded IUL Strategy?

A max funded IUL involves contributing the highest allowable premium into an IUL policy without triggering IRS limits (such as MEC rules). This strategy is used to:

  • Maximise cash value growth
  • Create tax-free income streams in retirement
  • Increase the internal rate of return on premiums paid

Max funded IUL policies are often used by high-income earners seeking tax-efficient long-term wealth accumulation.

Pros and Cons of Universal Life Insurance

Pros
Cons
Lifetime coverage with flexible termsComplexity may confuse new policyholders
Adjustable premiums and death benefitPotential for lapse if underfunded
Tax-deferred cash value accumulationFees may reduce overall returns
Can support estate planning and retirement incomeIUL and VUL options carry market-related risks

How Universal Life Insurance Supports Long-Term Goals

Universal life insurance can support:

  • Estate Planning: Ensures tax-efficient wealth transfer
  • Retirement Supplementation: Cash value may be accessed to provide income
  • Business Planning: Used for buy-sell agreements or executive bonus plans

Both traditional and indexed universal life insurance policies offer tools to build and protect wealth over time.


* 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.


AI was used in the creation of this content, along with human validation and proofreading.