Universal policies typically don't have fixed interest rates, so they are less predictable than whole life insurance policies. If you miss a payment on a universal life policy or don't contribute enough to the cash value, you may end up making several large payments to keep the coverage.

Universal life insurance is a type of permanent life insurance coverage, offering both a death benefit and a cash value component. The policy will remain in effect for the lifetime of the insured individual, as long as the premiums are paid on time.

The cash value in your whole or universal life insurance policy can come in handy when you need funds for large, ongoing or unexpected expenses. There are four ways to get the cash from your policy while you're still alive: borrow, withdraw, surrender, or sell.