Updated: August 27, 2025
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Universal life insurance provides lifelong coverage with flexible premiums and a cash value component, making it suitable for long-term financial planning.
North American is the best universal life insurance company overall. It also ranks first for seniors, smokers, overweight people, and young adult women.
Young male adults may find the best universal life insurance policy from Columbus, while the top-rated insurer for people in poor health is Protective.
Ethos stands out for indexed universal life insurance. Meanwhile, Midland National is the best cheap universal life insurance company for people who prioritize affordability.
North American, Columbus, Protective, Ethos and Midland National offer the best universal life insurance. These top providers are known for their financial strength, flexible policy options and high customer satisfaction. Universal life insurance gives you lifelong coverage with adjustable premiums, customizable death benefits and cash value growth.
Overall | North American | 100 | $295 (men); $252 (women) | $3,535 (men); $3,016 (women) |
Seniors | North American | 100 | $820 (men); $684 (women) | $9,845 (men); $8,202 (women) |
Young Adults (Men) | Columbus | 85 | $120 | $1,445 |
Young Adults (Women) | North American | 100 | $106 | $1,275 |
Smokers | North American | 100 | $592 (men); $508 (women) | $7,107 (men); $6,094 (women) |
Poor Health | Protective | 100 | $317 (men); $275 (women) | $3,804 (men); $3,302 (women) |
Overweight | North American | 100 | $311 (men); $263 (women) | $3,737 (men); $3,154 (women) |
Indexed Universal | Ethos | 100 | $328 (men); $275 (women) | $3,935 (men); $3,297 (women) |
Best Cheap Overall | Midland National | 90 | $295 (men); $251 (women) | $3,535 (men); $3,016 (women) |
North American ranks as the best universal life insurance provider overall, combining affordability, reliability and a diverse set of policy options. The company offers various policies, including indexed universal life policies, supported by an A+ AM Best rating and an A+ BBB rating.
Average monthly costs are $295 for adult men and $252 for adult women, making coverage accessible for many applicants. Its policies serve a wide range of groups, from young adults to seniors, smokers, and overweight applicants. With consistent performance across demographics, North American stands out as the top choice for flexible and long-lasting protection.
The company is also the top-rated company for:
Protective is the best company for universal life insurance if you have poor health, offering affordable rates and reliable long-term coverage. The company earned an overall MoneyGeek score of 100.
Average monthly costs are $317 for men and $275 for women in poor health, or about $3,804 and $3,302 annually. Established in 1907, Protective offers over a century of experience and backs its policies with an A+ AM Best rating. While applicants must complete a medical exam, the company provides flexible riders and policy tools, making it an excellent choice for individuals seeking dependable universal life protection despite health challenges.
Columbus is the best universal life insurance option for young adult men, offering a strong balance of affordability and stability. Average monthly premiums for young male adults are $120, or about $1,445 annually.
The company’s Voyager Universal Life plan includes a lifetime no-lapse guarantee, while Explorer Plus Universal Life provides added flexibility through features such as overloan protection and early guaranteed death benefits. Backed by an A+ AM Best rating and A+ BBB rating, Columbus delivers dependable coverage tailored to younger men seeking long-term financial security.
Ethos is ranked as the best indexed universal life insurance company, combining modern convenience with competitive costs. Average monthly premiums are $328 for men and $275 for women.
Ethos stands out for its streamlined, fully online application process, allowing customers to secure coverage within minutes. Policyholders also gain access to free riders, including accelerated death benefits and estate planning support, making Ethos a strong choice for those seeking flexible, long-term protection backed by trusted carrier partners.
Midland National is MoneyGeek's pick for the best cheap universal life insurance company for offering strong financial stability and affordable coverage. Average monthly premiums are $295 for adult men and $251 for adult women, making it a cost-effective option for lifelong protection.
With more than 115 years in the industry, Midland National provides universal life, indexed universal life and variable universal life insurance. Policyholders can enhance their coverage with riders such as accidental death, guaranteed insurability and overloan protection. The company also earned a J.D. Power rating of 643 and an A+ AM Best Rating.
Universal life insurance combines lifelong protection with flexibility, making it a smart option for those whose financial needs may change over time. This guide breaks down how universal policies work, including their adjustable premiums, customizable death benefits and potential for cash value growth. Whether you’re considering indexed, variable or guaranteed universal life, the sections below will help you compare providers, understand policy types and choose a plan that supports your long-term goals.
With so much flexibility built into these plans, finding the best universal life policy to meet your needs can take more effort. Here's how to pick the best universal life insurance plan for you:
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. 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.
Before you buy, ask yourself how much risk you can handle. Can you handle potential cash value fluctuations in indexed or variable universal life policies? Do you prefer guaranteed returns even if they're lower? Conservative investors should consider guaranteed universal life with fixed interest rates. In contrast, aggressive investors might choose indexed universal life for higher growth potential, understanding that cash values can decline during market downturns.
Consider your comfort level with policy management responsibilities. Universal life requires more attention than whole life insurance, including regular premium adjustments and cash value monitoring.
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 policies need regular monitoring to prevent policy lapses. Schedule annual policy reviews with your agent to assess:
Set calendar reminders for quarterly statement reviews. Watch for declining cash values or notices about increased premium requirements.
Monitor these warning signs that indicate potential policy problems:
Address these issues immediately by adjusting premiums, reducing coverage or switching to guaranteed universal life options.
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 costs depend on factors like age, lifestyle, health and coverage amount. Since universal life combines lifelong protection with a cash value component, premiums are generally higher than term life but offer more flexibility and long-term value. Rates also differ depending on whether you choose a standard or indexed universal policy, as well as any riders you add for additional protection.
The tables below provide average costs for different ages and coverage amounts. We also highlight average rates for smokers and people in poor health.
| $50,000 | $3 | $35 |
| $100,000 | $6 | $71 |
| $150,000 | $9 | $106 |
| $200,000 | $12 | $141 |
| $250,000 | $15 | $177 |
| $300,000 | $18 | $212 |
| $350,000 | $21 | $247 |
| $400,000 | $24 | $283 |
| $450,000 | $27 | $318 |
| $500,000 | $30 | $353 |
| $550,000 | $32 | $389 |
| $600,000 | $35 | $424 |
| $650,000 | $38 | $459 |
| $700,000 | $41 | $495 |
| $750,000 | $44 | $530 |
| $800,000 | $47 | $565 |
| $850,000 | $50 | $601 |
| $900,000 | $53 | $636 |
| $950,000 | $56 | $671 |
| $1,000,000 | $59 | $707 |
| $1,500,000 | $89 | $1,060 |
| $2,500,000 | $148 | $1,767 |
*The rates above are based on averages for nonsmokers with average weight and health ratings. Actual premiums may vary depending on your profile and coverage needs.
| $50,000 | $5 | $63 |
| $100,000 | $11 | $127 |
| $150,000 | $16 | $190 |
| $200,000 | $21 | $253 |
| $250,000 | $26 | $317 |
| $300,000 | $32 | $380 |
| $350,000 | $37 | $443 |
| $400,000 | $42 | $506 |
| $450,000 | $48 | $570 |
| $500,000 | $53 | $633 |
| $550,000 | $58 | $696 |
| $600,000 | $63 | $760 |
| $650,000 | $69 | $823 |
| $700,000 | $74 | $886 |
| $750,000 | $79 | $950 |
| $800,000 | $85 | $1,013 |
| $850,000 | $90 | $1,076 |
| $900,000 | $95 | $1,139 |
| $950,000 | $100 | $1,203 |
| $1,000,000 | $106 | $1,266 |
| $1,500,000 | $159 | $1,899 |
| $2,500,000 | $264 | $3,165 |
*The rates above are based on averages for smokers with average weight and health ratings. Actual universal life premiums may vary depending on your profile and coverage needs.
| $50,000 | $3 | $38 |
| $100,000 | $6 | $76 |
| $150,000 | $9 | $114 |
| $200,000 | $13 | $152 |
| $250,000 | $16 | $190 |
| $300,000 | $19 | $228 |
| $350,000 | $22 | $266 |
| $400,000 | $25 | $304 |
| $450,000 | $28 | $341 |
| $500,000 | $32 | $379 |
| $550,000 | $35 | $417 |
| $600,000 | $38 | $455 |
| $650,000 | $41 | $493 |
| $700,000 | $44 | $531 |
| $750,000 | $47 | $569 |
| $800,000 | $51 | $607 |
| $850,000 | $54 | $645 |
| $900,000 | $57 | $683 |
| $950,000 | $60 | $721 |
| $1,000,000 | $63 | $759 |
| $1,500,000 | $95 | $1,138 |
| $2,500,000 | $158 | $1,897 |
*The rates above are based on averages for nonsmokers with average weight and poor health ratings. Actual life insurance prices may vary depending on your profile and coverage needs.
Life insurance companies consider several factors to determine universal life premiums. Several things will impact what you pay:
These all make up the cost of insurance. Insurance companies deduct administrative and premium expenses when you pay your universal life insurance premium. The insurance cost is paid next, and then the rest goes into the cash value account.
A universal life policy provides permanent life insurance coverage. It 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.
Universal Life vs Whole Life Insurance
Universal life and whole life insurance both offer permanent coverage with cash value, but differ in flexibility.
Whole life requires fixed premium payments, while universal life lets you adjust payments based on your financial situation. Whole life provides guaranteed cash value growth at 2% to 4% annually. Universal life links cash value growth to current interest rates, which fluctuate over time. Universal life's flexibility appeals to people with variable income but requires more active management.
Universal Life vs Term Life Insurance
Universal life provides permanent coverage for your entire life, while term life insurance covers you for specific periods like 10, 20, or 30 years.
Term life premiums start much lower, often costing five to 10 times less than universal life for the same death benefit. Universal life builds cash value you can access through loans or withdrawals. Term life has no cash value component. Choose term life for temporary coverage needs and universal life for lifelong protection with cash value benefits.
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.
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.
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 on maintaining coverage without building significant savings. Often called a 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.
A variable policy works like indexed universal life, but with more investment options for the cash value. The account is structured like a mutual fund, using bonds and stocks to grow the value. A floor and ceiling cap on investment returns may exist. Otherwise, large premiums may be required after poor market performance to keep the policy in force.
Group life insurance is a 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 with more favorable terms than individual policies.
Not all riders are available for universal life policies; options may vary by company. Here are the most common free and paid riders offered with 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.
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.
Universal life insurance offers the flexibility to adapt your policy as your financial situation changes, while still providing lifelong coverage and potential cash value growth. North American stands out for its overall strength, Ethos leads in indexed options, and Protective excels in affordability. If you’re looking for long-term protection with room to adjust, the right universal policy can offer stability and control.
We answer frequently asked 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 North American, Columbus, Protective Ethos and Midland National.
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.
You typically can't change from one universal life type to another (like guaranteed to indexed universal life) within the same policy. However, you can perform a 1035 exchange to transfer cash value from your current policy to a new universal life policy without immediate tax consequences. This process requires underwriting approval and may involve surrender charges on your existing policy.
Review your universal life policy annually with your agent or financial advisor. Check your policy statements quarterly to monitor cash value performance and ensure premium payments are adequate. Schedule immediate reviews if you experience major life changes like marriage, divorce, birth of children, or significant income changes. More frequent monitoring prevents policy lapses and ensures your coverage meets current needs.
If you stop paying premiums, your policy will use cash value to cover monthly insurance costs and fees. Once the cash value is depleted, the policy lapses and coverage ends. Some policies offer grace periods of 31 to 61 days for late payments. If your policy has a no-lapse guarantee, it may continue even without payments, provided you've met minimum premium requirements during the guarantee period.
Yes, you can take policy loans against your universal life insurance cash value, typically borrowing up to 90% of the cash surrender value. Policy loans accrue interest at rates set by the insurance company, usually 4% to 8% annually. Borrowed amounts reduce the death benefit dollar-for-dollar. Unpaid loans plus interest can cause policy lapses if they exceed the cash value.
Surrender charges are fees for withdrawing cash value or canceling your policy, typically lasting 10 to 15 years after purchase. These charges start high (often 10% to 15%) and decrease annually until they reach zero. Policy loans allow you to access cash value without triggering surrender charges, but you pay interest on borrowed amounts. Loans don't reduce cash value directly, but unpaid loan interest can affect policy performance.
Interest rate changes significantly impact universal life policies. Higher interest rates increase cash value growth in traditional universal life policies, potentially reducing required premium payments. Lower rates decrease growth and may require higher premiums to maintain coverage. Indexed universal life policies are less affected by general interest rate changes, as they track market index performance with caps and floors rather than declared interest rates.
Universal life insurance offers several tax advantages. Cash value grows tax-deferred, meaning you don't pay taxes on growth until you withdraw it. Death benefits are generally tax-free to beneficiaries. However, withdrawals above your premium basis are taxable, and policy loans may create taxable income if the policy lapses. If your policy becomes a Modified Endowment Contract (MEC) due to excessive premium payments, loans and withdrawals are taxed as ordinary income.
Death benefits from universal life insurance are generally not taxable to beneficiaries. However, any interest earned on death benefit payments after the insured's death is taxable income. If the policyholder transferred ownership within three years of death, the death benefit may be included in their taxable estate. Employer-provided universal life coverage above $50,000 may also have tax implications.
Universal life insurance shopping means sifting through dozens of companies, each promising competitive rates and flexible coverage. The challenge isn't finding options; it's identifying which insurers actually deliver affordable premiums, reliable claims processing, and the policy flexibility that drew you to universal life in the first place.
We designed our research to cut through marketing claims and focus on what actually matters when you're comparing universal life policies. Our analysis examined 1,488 life insurance quotes alongside customer satisfaction data, financial stability reports, and product offerings to identify which companies deliver the best combination of value and reliability.
Our Scoring Framework
MoneyGeek ranked the top universal life insurance companies using the following weightings:
Each company's final score incorporates cost data from online quotes, AM Best financial strength ratings, years in business, NAIC customer complaint index data, and availability of tools like online account management and flexible payment options.
Sample Customer Profile
Our quotes used a standard profile representing a typical universal life insurance buyer:
We modified this baseline profile by age, gender, health status, and location to capture rate variations across different customer types. This approach revealed pricing patterns that helped us project costs for various demographics and identify which companies consistently offer competitive rates.
The data trends we identified allow us to extend our analysis beyond the original quote collection, giving you insights into how premiums might change as your circumstances evolve.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds 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 five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
