Best Universal Life Insurance Companies of 2025
Universal life insurance is a type of permanent life insurance that can serve as an investment vehicle in addition to providing financial protection. These policies accumulate cash value over time and offer flexible premiums and adjustable death benefits, making them attractive for those with complex financial goals, allowing policyholders to participate more actively in their financial planning. We’ve evaluated the leading universal life insurance providers to identify the best options in several key categories.
Here are a few of the best universal life insurance companies:
- Prudential Life Insurance: Best Variable Universal Life Insurance
- Mutual of Omaha Life Insurance: Best Indexed Universal Life Insurance
- State Farm Life Insurance: Best for Customer Service
- Nationwide Life Insurance: Best for Long-Term Care
- Penn Mutual Life Insurance: Best for No Medical Exams
- Mass Mutual Life Insurance: Best for Flexible Payment Options
- USAA Life Insurance: Best for Military Members
Prudential Life Insurance: Best Variable Universal Life Insurance (VUL)
Prudential Life Insurance excels with its variable universal life insurance offerings, particularly for buyers who wish to take on a higher level of investment risk for potentially greater returns. Returns in a variable universal life (VUL) policy fluctuate with the markets. The company provides three VUL plans that are designed to accommodate diverse risk appetites. Prudential’s VUL Protector is a noteworthy option with a no-lapse guarantee, ensuring coverage remains active even if the cash value depletes, provided premiums are paid.
The VUL Protector offers a balance of flexibility and investment potential, making it a good fit for a wide variety of investors, allowing investors to choose from 60 distinct investment options.
Prudential’s VUL Protector Survivorship policy provides the same features and benefits as the VUL Protector, but it is designed to cover two individuals, and it pays out after the second insured person passes away. Also available are early withdrawal and loan options.
For investors seeking higher returns, the PruLife Custom Premier II policy invests cash value across more than 50 sub-accounts, in addition to a fixed-rate option. This plan also features automatic rebalancing and dollar-cost averaging.
Prudential offers a hybrid universal life policy in the Flex Guard, which combines indexed and variable components to help customers optimize cash value growth.
Mutual of Omaha Life Insurance: Best Indexed Universal Life Insurance (IUL)
Mutual of Omaha Life Insurance provides two indexed universal life insurance plans. Indexed universal life insurance links cash value growth to market indexes, such as the S&P 500. This can be a good option for those seeking moderate returns with a lower-risk exposure.
The Life Protection Advantage plan offers no-lapse protection, and the cash value grows based on the performance of the S&P 500.
The Income Advantage Indexed Universal Life policy also mirrors the performance of the S&P 500 and includes a Guaranteed Refund Option rider, offering a return of premiums surrendered, depending on the policy’s duration.
State Farm Life Insurance: Best Universal Life Insurance for Customer Service
State Farm Life Insurance consistently scores well in customer satisfaction surveys, earning a reputation as one of the best and most affordable providers. Customers often appreciate the ability to bundle various insurance products. These plans are generally regarded as safe and steady.
State Farm offers universal, survivorship, and joint universal life insurance policies, with coverage limits varying from $25,000 to $50,000. All life insurance policies are quoted through an agent. State Farm distinguishes itself by offering several insurance categories.
Nationwide Life Insurance: Best Universal Life Insurance for Long-Term Care
Nationwide provides access to all different types of universal life insurance policies, including universal, variable universal, indexed universal, and universal survivorship policies.
Nationwide offers multiple accelerated benefits at no added cost, including assistance for chronic, critical, and terminal illnesses. They also offer a hybrid long-term care and universal insurance program called CareMatters.
Penn Mutual Life Insurance: Best No Medical Exam Life Insurance
To streamline the application process, some insurers do not require a medical exam. This may lead to individuals paying a higher premium instead of having to acquire a medical assessment.
Applicants between 20 to 65 years old can potentially receive up to $7.5 million in coverage without a medical exam, provided they complete a medical questionnaire. Representatives are on hand, allowing you to evaluate available options.
Mass Mutual Life Insurance: Best Universal Life Insurance for Flexible Payment
Mass Mutual Life Insurance offers standard, variable, and survivorship universal life policies. These policies allow buyers to modify their premiums on demand, which in turn can adjust the death benefit.
Premium changes may be made monthly according to your circumstances. The plan is likely to benefit those who have a higher deposit early. A MassMutual representative can help you adapt to life changes.
USAA Life Insurance: Best Universal Life Insurance for Military Members
USAA Life Insurance provides financial products to those who have served their country. Its life insurance policies are available to the general public, but military members receive unique benefits, such as the Life Event Option rider, providing up to $100,000 for circumstances like marriage or having a child. These insurance policies have more modest death benefits.USA provides a minimum guaranteed interest rate to help minimize risk.
What is Universal Life Insurance?
Universal life insurance, as a type of permanent life insurance, allows policyholders to invest a policy’s cash value. This financial instrument is defined by its flexible premiums, adjustable death benefits, and cash value accumulation. This form of life insurance helps to create a more flexible means of securing your family’s financial plan.
Flexible Premium Payments
One key advantage of universal life insurance over whole life insurance is the flexibility to adjust premium payments. Policyholders may modify their premiums as needed, such as for periods of financial hardship.
Adjustable Death Benefit
Adjusting premiums will also change the death benefits. If your dependents are no longer dependent on the policy, you may want to lower your benefit.
Cash Value Accumulation
As you pay premiums, the cash value accumulates over time. The type of universal life insurance determines how fast your cash value grows. Since this form of life insurance demands more management, it’s often utilized by people who enjoy an active role in maintaining their policy.
Types of Universal Life Insurance
The content below offers more detail on the three different kinds of universal life insurance discussed above.
- Fixed Universal Life Insurance: This type of policy typically carries the lowest risk, with the cash value growing at a predetermined interest rate.
- Indexed Universal Life Insurance: Cash value growth in this type of policy is tied to market indexes like the S&P 500. Indexed universal life insurance may offer a balance between risk and return.
- Variable Universal Life Insurance: With this option, policyholders can grow their cash value through a portfolio of stocks. Investment options vary by insurance company and present the highest risk.
How to Choose the Best Universal Life Insurance Company
Financial Strength
Assess the company’s financial stability using metrics like J.D. Power’s customer satisfaction ratings and AM Best financial strength ratings.
Policy Options
Ensure the company offers the specific type of universal life insurance policy you require, whether it’s fixed, indexed, or variable. Assess any riders you might need.
Cash Value Growth
Evaluate the available investment options and the potential for building cash value based on your financial goals.
Premiums
Collect quotes from multiple providers to compare costs and determine the most affordable option.
Customer Service
Review customer feedback on sites like Trustpilot and the Better Business Bureau to gauge the responsiveness and reliability of the provider.
Evelyn He, Compliance and Operations Associate
