The best universal life insurance combines lifelong coverage with flexible premiums, cash value growth, and customizable death benefits. In 2025, MoneyGeek ranks North American, Protective Insurance, Ethos and Midland National as the top universal life insurance companies. These providers stand out for their financial strength, flexible policy options, and customer satisfaction.
Best Universal Life Insurance Companies in 2025
Updated: October 15, 2025
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Key Takeaways
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 and people who are overweight.
The top-rated insurer for people in poor health is Protective Insurance. Ethos stands out for indexed universal life insurance. Meanwhile, Midland National is the best cheap universal life insurance company.
What is the Best Universal Life Insurance?
Overall | North American | 5 | $295 (men) $252 (women) | $3,535 (men) $3,016 (women) |
Poor Health | Protective Insurance | 5 | $317 (men) $275 (women) | $3,804 (men) $3,302 (women) |
Indexed Universal | Ethos | 5 | $328 (men) $275 (women) | $3,935 (men) $3,297 (women) |
Best Cheap Overall | Midland National | 4.5 | $295 (men) $251 (women) | $3,535 (men) $3,016 (women) |
Rates based on averages from MoneyGeek's 2025 life insurance survey for nonsmokers with average weight and health ratings. Actual premiums may vary significantly depending on your individual profile, health status, coverage needs and insurer underwriting guidelines. Rates shown are for illustrative purposes only.
Best Overall: North American
North American
MoneyGeek Rating
5/ 5
5/5Affordability
5/5Customer Experience
5/5Coverage Options
Average Monthly Cost
$295 (men); $252 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.Average Annual Cost
$3,535 (men); $3,016 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.
Best for People in Poor Health: Protective Insurance
Protective
MoneyGeek Rating
5/ 5
5/5Affordability
5/5Customer Experience
5/5Coverage Options
Average Monthly Cost
$317 (men); $275 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.Average Annual Cost
$3,804 (men); $3,302 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.
Best Indexed Universal Life Insurance Company: Ethos
Ethos
MoneyGeek Rating
5/ 5
5/5Affordability
5/5Customer Experience
5/5Coverage Options
Average Monthly Cost
$328 (men); $275 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.Average Annual Cost
$3,935 (men); $3,297 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.
Best Cheap: Midland National
Midland National
MoneyGeek Rating
4.5/ 5
5/5Affordability
3.8/5Customer Experience
4.2/5Coverage Options
Average Monthly Cost
$295 (men); $251 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.Average Annual Cost
$3,535 (men); $3,016 (women)Based on average quotes for $500,000 policy for 30- to 49-year-old nonsmokers.
What Is Universal Life Insurance?
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 financial protection with cash value benefits.
How to Choose the Best Universal Life Insurance Policy
With so much flexibility built into universal life policies, finding the best universal life policy to meet your needs takes more effort:
- 1
Figure out how much coverage you need
Determine what you want your policy to cover. Is coverage for 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.
- 2
Determine your budget
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.
- 3
Assess your risk tolerance
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 returns are lower? Conservative investors should consider guaranteed universal life with fixed interest rates. But 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. - 4
Consider the cash value account
our 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.
- 5
Plan for policy monitoring requirements
Universal life policies need regular monitoring to prevent policy lapses. Schedule annual policy reviews with your agent to assess:
- Premium adequacy: Ensure payments cover insurance costs and fees
- Cash value performance: Track actual vs. projected growth
- Coverage adjustments: Modify death benefits based on changing needs
- Interest rate impacts: Understand how rate changes affect your policy
Set calendar reminders for quarterly statement reviews. Watch for declining cash values or notices about increased premium requirements.
- 6
Recognize red flags during policy ownership
Monitor these warning signs that indicate potential policy problems:
- Premium notices: Letters requesting higher payments to keep coverage active
- Declining cash values: Consistent drops in account value over multiple quarters
- Lapse warnings: Company notices about insufficient funds to cover costs
- Illustration updates: Significant differences between original projections and actual performance
Address these issues immediately by adjusting premiums, reducing coverage or switching to guaranteed universal life options.
- 7
Talk to an agent
Universal life insurance is the most complex type, offering high flexibility. Consult an agent to discuss your goals and needs, ensuring you choose the right policy for your situation.
COMPARE PERSONALIZED QUOTES
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.
How Much is Universal Life Insurance?
Life insurance costs depend on factors like age, lifestyle, health and coverage amount. Because universal life combines lifelong financial 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 financial protection.
The tables provide average costs for different ages and coverage amounts. We also highlight average rates for smokers and people in poor health:
Average Cost of Universal Life Insurance
Data filtered by:Results filtered by:
Select
Age:40
Select
Gender:Male
| $100,000 | $59 | $706 |
| $250,000 | $147 | $1,764 |
| $500,000 | $294 | $3,528 |
| $750,000 | $441 | $5,292 |
| $1,000,000 | $588 | $7,056 |
| $2,500,000 | $1,470 | $17,640 |
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.
What Factors Impact the Cost of Universal Life?
Life insurance companies consider several factors to determine universal life premiums. Several things will impact what you pay:
- Age
- Health and family medical history
- Driving record
- Smoking status
- ZIP code
- Lifestyle, hobbies and occupation
- Coverage amount
- The type of universal life insurance you buy
- Riders and supplemental benefits
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.
Pros and Cons of Universal Life Insurance
Pros
- Cash value that can be used in several ways
- Control over where the cash value is invested
- Returns may have a minimum guarantee, and some policies have no cap
- Flexible premiums
- Flexible death benefit
- No lapse guarantee in some policies
- Lifetime insurance coverage
- Some policies offer guaranteed interest rates
Cons
- Potential for negative returns and inflated policy payments to prevent lapse
- May need to overfund initially to avoid future lapses
- Requires monitoring of cash value
- Increased risk with stock market fluctuations
- Takes time to build cash value
- May not perform as well as other investments
- Usually not offered online
Types of Universal Life Policies
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.
Traditional universal life
This permanent life insurance allows you to decrease or increase coverage amounts and premium payments. It also has a cash value element that grows with time. The insurance company sets the interest rate based on its investment portfolio performance and market conditions, with a guaranteed minimum rate. Your money isn't directly invested in stocks or market indexes.
Pros:
- Flexible premium payments
- Cash value growth with minimum guaranteed interest rate
- Adjustable death benefit
Cons:
- Lower growth potential than indexed or variable policies
- Returns depend on insurer’s crediting rate
- May require careful funding to avoid lapses
Best for: People who want flexibility with steady, low-risk growth
Guaranteed universal life
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.
Pros:
- Affordable way to secure lifetime coverage
- Guaranteed death benefit regardless of cash value performance
- Predictable premiums
Cons:
- Little to no cash value growth
- Less flexibility than other UL types
- Limited use for wealth accumulation or borrowing
Best for: People who want affordable, predictable lifetime coverage
Indexed universal life
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.
Pros:
- Higher growth potential than traditional UL
- Downside protection with a zero percent floor
- Flexible premiums and adjustable death benefits
Cons:
- Growth is capped, limiting upside potential
- Complex crediting strategies that may confuse policyholders
- Requires regular monitoring to ensure adequate funding
Best for: People seeking moderate growth with downside protection
Variable universal life
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. Your money is directly invested in market subaccounts, so returns can be positive or negative based on actual market performance without floors or caps protecting against losses.
Pros:
- Highest growth potential among UL subtypes
- Wide choice of investment subaccounts
- Flexible premiums and adjustable benefits
Cons:
- Market losses can reduce cash value and affect coverage
- More expensive fees than other UL policies
- Requires active management and investment knowledge
Best for: People comfortable with investment risk and active management
If you're considering universal life insurance, review the policy documents thoroughly to understand the plan's fees, charges and specifics.
WHAT IS GROUP UNIVERSAL LIFE INSURANCE?
Group life insurance is a policy offered to groups, typically by employers as part of a benefits package. Many companies provide group life insurance as term life insurance.
But some companies provide permanent plans like group universal life insurance, combining universal life benefits with group coverage. Group universal life insurance offers flexible premiums and a cash value component at lower costs. Though not as common as group term life insurance, group universal life insurance attracts employers seeking comprehensive benefits with more favorable terms than individual policies.
Best Companies for Universal Life Insurance: Bottom Line
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 overall strength, while Midland National excels in affordability. If you're looking for long-term financial protection with room to adjust, the right universal policy can offer stability and control.
Universal Life Insurance: FAQ
We answer common questions about universal life insurance to help you determine the best policy for your needs.
What are the pros of universal life insurance?
Universal life insurance pros include 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 out the policy if you no longer need coverage.
What are the cons of universal life insurance?
Universal life insurance cons include requiring active management because universal life insurance isn't a "set it and forget it" policy, especially for policies 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, underfunding risk can cause the policy to lapse.
Is universal life insurance worth it?
Universal life insurance is worth it for those seeking lifetime coverage with flexible premiums and the potential to accumulate cash value, depending on their financial goals and needs.
What happens if I stop paying premiums on universal life insurance?
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.
Can I borrow against my universal life insurance policy?
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 loans exceed the cash value.
Our Review Methodology
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 248,399 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:
- Affordability (55%)
- Customer Experience (30%)
- Coverage Options (15%)
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:
- 30- to 49-year-old
- Nonsmoker
- 5'9" tall, 160 pounds for male
- 5'4" tall, 120 pounds for female
- Average health rating
We modified this baseline profile by age, health status, weight and smoking status 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.
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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.