Universal life insurance is permanent insurance with the flexibility to meet a variety of needs. Like whole life insurance, it builds cash value. In addition, it allows you to vary the amount and/or timing of premium payments, as well as to adjust the death benefit amount, within certain limits, to adapt to your changing needs. Your premiums fund the benefits of the policy. A portion of your premium goes to covering the cost of your coverage, while the balance goes into an account value fund, to which interest is credited and from which other ongoing policy charges are deducted.