Universal Life Insurance Universal life insurance provides death protection and may also provide a tax-deferred savings component. Its flexible premiums allow death benefit amounts and savings to be adjusted as individual needs change, subject to policy limitations and the insurability of the policy holder. If the need for coverage is for a period of 10 to 20 years, this product should be considered. The policy may provide the option of investing the underlying funds in investments accounts. This type of policy is called variable universal life insurance. Typically these investment accounts operate somewhat like mutual funds and can be structured to mirror your risk tolerance and investment strategy. Investment returns are not guaranteed.