Universal-life insurance was created to address many of the problems associated with whole-life insurance. One problem with whole-life insurance is its lack of flexibility. A second problem with whole life is that it is much like a black box. The owner cannot see exactly how it works. Universal life provides solutions to these problems.

To fully understand universal life, refer to "Life Insurance: Whole-Life Insurance", Virginia Cooperative Extension publication 354-145, for some background information.