Article
Best Universal Life Insurance in 2026
Discover the top 10 universal life insurance companies offering flexible premiums and lifelong coverage. Compare rates, cash value growth options, and policy features to find the right permanent insurance.
Universal life insurance combines permanent coverage with flexible premiums and cash value growth. Unlike term insurance that expires, UL policies provide lifelong protection while building tax-advantaged cash value you can access through loans or withdrawals.
Our team analyzed dozens of universal life insurers, comparing rates, product features, financial strength, and customer satisfaction to identify the best companies for 2026.
Quick Comparison
| Company | Best For | Starting Price | Rating |
|---|---|---|---|
| 1. Pacific Life | Best Overall Universal Life Insurance | $185/mo | ★4.9/5 |
| 2. Northwestern Mutual | Best for Customer Satisfaction | $195/mo | ★4.9/5 |
| 3. Guardian | Best for People with Health Conditions | $175/mo | ★4.8/5 |
| 4. State Farm | Best for Bundling All Policies | $180/mo | ★4.8/5 |
| 5. New York Life | Best for Rider Options | $200/mo | ★4.9/5 |
| 6. Thrivent | Best for Social Responsibility | $190/mo | ★4.7/5 |
| 7. Penn Mutual | Best No-Lapse Guarantee | $175/mo | ★4.7/5 |
| 8. North American | Best Overall Value | $170/mo | ★4.8/5 |
| 9. Protective Insurance | Best Low-Cost Option | $165/mo | ★4.7/5 |
| 10. Midland National | Best for Flexible Premiums | $178/mo | ★4.6/5 |
Our Top Picks in Detail
Pacific Life
Pacific Life was awarded the 2026 Bankrate Award for Best Universal Life Insurer, offering a comprehensive range of insurance products including indexed, guaranteed, and variable UL coverage plus a robust list of riders for customization.
Pros
- ✓2026 Bankrate Award for Best UL Insurer
- ✓Comprehensive range of UL products
- ✓Indexed, guaranteed, and variable options
- ✓Robust list of riders available
- ✓A+ AM Best rating for financial stability
Cons
- ✗Higher premiums than term insurance
- ✗Complex products require advisor guidance
- ✗Medical underwriting can be extensive
Northwestern Mutual
Northwestern Mutual excels at customer satisfaction with exceptional service, comprehensive financial planning, and the highest financial strength ratings. Their universal life products integrate seamlessly with broader wealth strategies.
Pros
- ✓Exceptional customer satisfaction ratings
- ✓A++ financial strength (highest rating)
- ✓Comprehensive financial planning included
- ✓Multiple UL product options
- ✓Strong dividend history on participating policies
Cons
- ✗Requires meeting with financial advisor
- ✗Higher premiums than competitors
- ✗No fully online purchase option
Guardian
Guardian stands out for their flexible underwriting approach, making universal life insurance accessible to people with health conditions who might struggle to qualify elsewhere. Their diverse UL lineup accommodates various needs and budgets.
Pros
- ✓Flexible underwriting for health conditions
- ✓Multiple UL product types available
- ✓Exceptional financial strength ratings
- ✓Low complaint rate
- ✓Accessible coverage options
Cons
- ✗Agent-based sales primarily
- ✗Higher premiums for impaired risk applicants
- ✗Application process can be lengthy
State Farm
State Farm makes universal life insurance convenient for families who want to consolidate all their insurance needs in one place. Their multi-policy discounts and vast agent network provide personalized service and potential savings.
Pros
- ✓Multi-policy discounts available
- ✓Extensive local agent network
- ✓Bundle with auto, home, and other insurance
- ✓Strong financial ratings
- ✓Consistent customer service
Cons
- ✗Must work with local agent
- ✗Limited UL product variety
- ✗Rates vary by location
New York Life
New York Life offers the most comprehensive rider options in the universal life market, allowing you to customize your policy with chronic illness, disability, and long-term care benefits to match your unique needs.
Pros
- ✓Extensive rider options for customization
- ✓A++ financial strength rating
- ✓Over 175 years in business
- ✓Mutual company owned by policyholders
- ✓Strong cash value growth potential
Cons
- ✗Higher premiums than many competitors
- ✗Requires agent consultation
- ✗Complex products need expert guidance
Thrivent
Thrivent combines universal life insurance with social responsibility as a faith-based fraternal benefit society. Members enjoy financial products while participating in community giving and values-aligned programs.
Pros
- ✓Faith-based fraternal benefit society
- ✓Members receive financial benefits
- ✓Generosity programs and community impact
- ✓Strong financial ratings
- ✓Values-aligned insurance options
Cons
- ✗Membership requirements apply
- ✗Limited to Christian applicants
- ✗Fewer UL product options than competitors
Penn Mutual
Penn Mutual specializes in guaranteed universal life insurance with industry-leading no-lapse guarantees. Their policies ensure coverage remains in force to age 90 or beyond, providing permanent protection at affordable rates.
Pros
- ✓Strongest no-lapse guarantees available
- ✓Coverage guaranteed to age 90 or later
- ✓Competitive guaranteed UL rates
- ✓Strong financial strength
- ✓Flexible premium payment options
Cons
- ✗Limited cash value accumulation
- ✗Fewer riders than competitors
- ✗Traditional application process
North American
North American earns top marks from MoneyGeek for overall value in universal life insurance, balancing affordability, customer experience, and coverage options. Their competitive rates make permanent insurance accessible.
Pros
- ✓MoneyGeek's top overall UL company
- ✓Excellent affordability ratings
- ✓Strong customer experience scores
- ✓Comprehensive coverage options
- ✓Competitive rates for UL insurance
Cons
- ✗Less brand recognition than larger insurers
- ✗Agent network smaller than competitors
- ✗Limited direct-to-consumer options
Protective Insurance
Protective Insurance offers the most affordable universal life insurance rates without sacrificing quality. Their guaranteed UL products provide permanent coverage at prices that compete with extended term policies.
Pros
- ✓Most affordable UL rates available
- ✓Guaranteed UL with competitive pricing
- ✓Strong financial strength ratings
- ✓Simplified underwriting options
- ✓Good customer service ratings
Cons
- ✗Fewer product options than larger insurers
- ✗Limited cash value growth in guaranteed products
- ✗Agent availability varies by region
Midland National
Midland National excels at premium flexibility, allowing policyholders to adjust payments up or down as their financial situation changes. This adaptability makes permanent coverage sustainable through life's financial fluctuations.
Pros
- ✓Highly flexible premium payment options
- ✓Adjust payments as financial needs change
- ✓Competitive indexed UL products
- ✓Strong financial ratings
- ✓Good cash value accumulation
Cons
- ✗Limited agent availability in some areas
- ✗Fewer rider options than major carriers
- ✗Lower brand recognition
How We Evaluate Universal Life Insurance Companies
Universal life insurance requires careful evaluation due to its complexity. Our methodology examines:
Financial Strength Ratings
We prioritize insurers with A or better ratings from AM Best. Universal life policies are long-term commitments—you need confidence your insurer will be financially sound for decades.
Product Variety
The best UL insurers offer multiple product types:
- Guaranteed Universal Life: Fixed premiums with no-lapse guarantees to specific ages
- Indexed Universal Life: Cash value tied to market index performance with caps and floors
- Variable Universal Life: Cash value invested in sub-accounts with greatest growth potential and risk
Premium Flexibility
Universal life’s defining feature is flexible premiums. We evaluate:
- Ability to adjust payment amounts and frequency
- Options to increase or decrease death benefit
- Impact of payment changes on policy guarantees
- Transparency of policy mechanics
Cash Value Growth Potential
We analyze how cash value accumulates and can be accessed:
- Interest crediting methods and historical rates
- Policy loan provisions and interest rates
- Withdrawal rules and surrender charges
- Tax advantages of cash value growth
Customization Through Riders
We assess available riders including:
- Chronic illness and long-term care benefits
- Disability waiver of premium
- Accelerated death benefit provisions
- Additional coverage options
Understanding Universal Life Insurance Costs
The average annual cost of a $500,000 universal life insurance policy for a 40-year-old in excellent health is approximately:
- Men: $3,101 per year ($258/month)
- Women: $2,698 per year ($225/month)
Universal life is significantly more expensive than term insurance because it provides lifelong coverage and builds cash value. However, it’s generally less expensive than whole life insurance while offering similar permanent protection.
Types of Universal Life Insurance
Guaranteed Universal Life (GUL)
Combines the best elements of term and whole life with permanent coverage at fixed rates. Most affordable UL option with guaranteed premiums to age 90 or later. Limited cash value growth but ensures coverage remains in force.
Best for: Those wanting permanent coverage at the lowest cost with no-lapse guarantees.
Indexed Universal Life (IUL)
Cash value growth tied to market index performance (typically S&P 500). Includes caps limiting upside and floors protecting downside. Offers potential for higher returns than guaranteed UL.
Best for: Those seeking cash value growth potential with some market exposure but downside protection.
Variable Universal Life (VUL)
Cash value invested in sub-accounts similar to mutual funds. Greatest growth potential but also highest risk. Requires active management and investment knowledge.
Best for: Sophisticated investors comfortable with market risk seeking maximum growth potential.
Key Features of Universal Life Insurance
Flexible Premiums
Unlike whole life’s fixed premiums, UL allows you to:
- Pay more to build cash value faster
- Pay less (within limits) during financial difficulties
- Skip payments if sufficient cash value exists
- Adjust payments as your financial situation changes
Adjustable Death Benefit
Most UL policies offer two death benefit options:
- Level death benefit: Fixed amount plus accumulated cash value
- Increasing death benefit: Face amount plus growing cash value
You can often switch between options as needs change.
Cash Value Access
Access your policy’s cash value through:
- Policy loans: Borrow against cash value at favorable rates
- Withdrawals: Take money out (may reduce death benefit)
- Surrender: Cancel policy and receive cash value minus fees
Frequently Asked Questions
How much does universal life insurance cost?
For a healthy 40-year-old, expect to pay $165-$200+ per month for $500,000 in coverage. Costs vary significantly based on UL type (guaranteed, indexed, or variable), age, health, gender, and coverage amount.
What’s the difference between universal life and whole life insurance?
Universal life offers flexible premiums and adjustable death benefits; whole life has fixed premiums and guaranteed cash value growth. UL provides more flexibility; whole life provides more guarantees and predictability.
Can I adjust my universal life insurance premiums?
Yes, premium flexibility is UL’s defining feature. You can increase, decrease, or skip payments within policy limits, though changes affect cash value growth and policy guarantees.
How does cash value grow in universal life insurance?
Growth depends on UL type: guaranteed UL earns fixed interest rates, indexed UL ties to market index performance with caps and floors, and variable UL invests in sub-accounts with unlimited potential and risk.
What happens if I stop paying universal life premiums?
If you have sufficient cash value, the policy can sustain itself using accumulated value. If cash value is insufficient, the policy may lapse unless you resume payments or reduce the death benefit.
Is universal life insurance a good investment?
UL is primarily insurance, not investment. While it builds tax-advantaged cash value, it shouldn’t replace traditional retirement accounts. It’s best for those needing permanent coverage who want flexibility and cash value growth.
Can I convert term life to universal life?
Many term policies include conversion options allowing you to switch to UL without new medical underwriting. Check your term policy’s conversion period and available UL products.
What’s a no-lapse guarantee in universal life?
A no-lapse guarantee ensures the policy remains in force to a specific age (often 90-121) as long as you pay minimum required premiums, regardless of cash value or interest rate performance.