Those seeking both financial security and investment potential often turn to universal life insurance. This type of policy provides financial protection while also offering opportunities to grow and diversify assets. A key advantage is the potential for continued growth, provided payments are maintained, even if the policy isn’t whole life insurance.
Universal life insurance is especially well-suited for individuals who want their life insurance to play an active role in their long-term financial planning, extending beyond just providing for beneficiaries. We’ve compiled a list of the top universal life insurance companies, focusing on their ability to serve as both investment vehicles and reliable insurance providers. Here are our selections:
Best Universal Life Insurance Companies of 2025
- Best variable universal insurance: Prudential Life Insurance
- Best indexed universal insurance: Mutual of Omaha Life Insurance
- Best customer service: State Farm Life Insurance
- Best for long-term care: Nationwide Life Insurance
- Best for no medical exams: Penn Mutual Life Insurance
- Best for flexible payment options: Mass Mutual Life Insurance
- Best for military members: USAA Life Insurance
Insights into Top Providers
Prudential Life Insurance: Best Variable Universal Life Insurance (VUL)
Prudential Life Insurance is our top choice for those considering variable universal life insurance. VUL policies carry more investment risk, as returns fluctuate with market performance. However, this risk can be offset by potentially higher returns in favorable market conditions.
Prudential offers three variable universal life insurance plans designed for buyers with a moderate to high-risk tolerance. The Prudential VUL Protector is a policy with a no-lapse guarantee, which provides continued coverage even if the cash value reaches zero, as long as premiums are paid. This feature is especially beneficial for those making lower contributions with large withdrawals, or for those who take regular withdrawals.
This variable life insurance program provides a wide array of investment options, including 60 distinct investment options and a fixed-rate option. Prudential’s agents are available to help you navigate these choices and allocate your investments.
The VUL Protector Survivorship policy by Prudential extends the benefits of the VUL Protector plan to two individuals, paying out after the second insured individual passes away. Early withdrawal and loan options are also available until the policy pays out.
For high-risk investors, The PruLife Custom Premier II allows investing cash value in over 50 investment sub-accounts along with an option for fixed returns and offers automatic rebalancing and dollar cost averaging.
To buffer against market downturns, buyers can supplement their PruLife Custom Premier II policy with an S&P 500 rider. This rider offers a minimum guaranteed interest rate, no matter how the market performs. Prudential also offers a hybrid universal life policy, the Prudential Flex Guard, which combines indexed and variable universal life insurance to 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. Instead of individual stocks, indexed universal life insurance directs your cash value into indexed stocks and options. This can appeal to those seeking moderate returns with less risk.
The first option is the Life Protection Advantage plan, which features no-lapse protection and accumulates cash value at an interest rate tied to the S&P 500 performance. Mutual of Omaha invests in three interest-crediting strategies and a fixed account with a 2% guaranteed interest rate.
Similar to the Life Protection Advantage, the Income Advantage Indexed Universal Life policy tracks the S&P 500. This option offers a Guaranteed Refund Option rider for surrender of the policy, potentially providing a 50% to 100% return of premium, based on how long you’ve held the policy.
With flexible withdrawal options, and loan options, Mutual of Omaha’s permanent life insurance plans help individuals keep their policies open and growing.
State Farm Life Insurance: Best Universal Life Insurance for Customer Service
State Farm Life Insurance stands out for its customer service, often ranking high in customer satisfaction surveys. Their agents manage a range of services, including homeowners, auto, and life insurance, leading to potential bundling discounts and service ease. A dedicated agent can manage all your insurance needs.
State Farm offers universal, survivorship, and joint universal life insurance policies. Coverage limits vary from $25,000 to $50,000, and all life insurance policies require going through an agent for an application. State Farm offers a conservative approach to life insurance, with less emphasis on wealth-building. However, the company’s approach can be great for families looking for stable insurance options.
Nationwide Life Insurance: Best Universal Life Insurance for Long-Term Care
Nationwide Life Insurance provides multiple universal life insurance types: universal, variable universal, indexed universal, and universal survivorship policies. They also offer a no-lapse guarantee that protects your policy from expiring if your cash value drops to zero.
Nationwide includes three accelerated benefits (chronic, critical, and terminal illness) at no added cost. They also developed CareMatters, a hybrid long-term care and universal insurance program. CareMatters provides a monthly benefit that the user can administer at their discretion. This feature can be helpful to those who would like a little more support.
Nationwide’s plans are accessible for many American families, with an easier application process that eases buyers into life insurance, without complicated investment conversations.
Penn Mutual Life Insurance: Best No Medical Exam Life Insurance
Some applicants are open to paying a higher premium to skip a medical exam because they have concerns they don’t qualify for certain life insurance or simply don’t want to undergo the process. Penn Mutual caters to these buyers. The insurer offers up to $7.5 million in coverage without a medical exam for healthy applicants aged 20 to 65. Instead of a medical exam, applicants must complete a medical questionnaire.
Penn Mutual’s policies are well-suited for younger, healthier applicants. Agents can help evaluate options and, in cases of high risk or the necessity of a medical exam, can advise on soft underwriting.
Mass Mutual Life Insurance: Best Universal Life Insurance for Flexible Payment
Mass Mutual Life Insurance offers standard universal, variable, and survivorship universal life policies. Unlike term or whole life policies, universal life policies allow you to modify your premium at different coverage points, which in turn affects death benefits.
MassMutual provides flexibility in premium adjustments, with the option for monthly rate changes based on life circumstances. While these plans have high-growth potential, early, large deposits can help maximize the opportunity. A MassMutual advisor can help buyers with plans that can adapt to life changes over the short and long-term. This category highlights MassMutual’s focus on assisting clients through these adjustments.
USAA Life Insurance: Best Universal Life Insurance for Military Members
USAA Life Insurance provides affordable financial products, particularly for military members, however, some plans are available to the general public too. Military members get a Life Event Option rider that can provide up to $100,000 for qualifying events, like marriage or the birth of a child.
USAA offers comprehensive coverage to active-duty service members, though policies may have more modest death benefits. USAA’s more accessible policies, coupled with military-specific benefits and riders, meet many buyers’ requirements.
Under the traditional universal life insurance plan, USAA invests your cash value within its portfolio. They secure a 1% minimum guaranteed interest rate. An indexed universal life policy with USAA provides a 0% floor on interest rates and carries more risk for moderate returns.
What is Universal Life Insurance?
Universal life insurance is a type of permanent life insurance, allowing investment using the policy’s cash value. Its three main features: flexible premiums, adjustable death benefits, and cash value accumulation.
Flexible Premium Payments
The defining trait is the ability to adjust your premiums, giving policyholders more control than whole or term life policies. This is particularly helpful for those who face temporary financial issues.
Adjustable Death Benefit
As you adjust premiums, the death benefit also changes. When dependents become financially independent, reducing the death benefit can lower premiums.
Cash Value Accumulation
Cash value grows over time with premium payments and the type of universal life insurance plan you choose. This makes universal policies potentially more involved than other life insurance, suitable for those wanting an active role in managing their policy.
Types of Universal Life Insurance
Fixed Universal Life Insurance
This policy type carries the lowest risk, with cash value growth based on a fixed interest rate, which offers predictable growth, though potential gains are lower.
Indexed Universal Life Insurance
Indexed universal life insurance links cash value growth to indexes, such as the S&P 500. This is a balance between risk and return.
Variable Universal Life Insurance
Variable universal life insurance allows you to grow your cash value by investing in stocks of your choice. It’s a good option for those who prefer active investment. It carries the highest risk and the most potential gains. Constant attention to policy performance is needed to guarantee that you stay covered the whole time you need it. This product is one of the most expensive policies on the market.
How to Choose the Best Universal Life Insurance Company
When choosing between life insurance providers, consider the following factors:
Financial Strength
J.D. Power’s customer satisfaction rating is a good starting point to assess how customers perceive the insurance company. An AM Best’s financial strength rating provides an overview probability of an insurance company fulfilling policy obligations.
Policy Options
Find a company that has the particular style of policy required, whether fixed, indexed, or variable. Consider the availability of desired riders.
Cash Value Growth
Evaluate investment options offered to build cash value, comparing available options with your policy goals.
Premiums
Gather multiple quotes from different insurance companies to understand the cost of coverage. This helps in identifying the best value. You should prepare to answer questions about your medical and financial history.
Customer Service
An important factor is the ease of contacting customer service. Review customer feedback on sites like Trustpilot and the Better Business Bureau. Other third party sites often provide customer insight into how each company treats its customers.
