Who qualifies for universal life insurance?

Each life insurance carrier determines its own criteria for who may apply and qualify for each type of offered life insurance product. If one company refuses to insure you with such a policy, there may be another comparable company that won’t hesitate to offer this type of policy to you. It may require shopping around between providers to find the right one, but potential policyholders should be wary about giving up too soon when looking to qualify for any specific type of life insurance plan.

How much does universal life insurance cost?

The cost of universal life insurance varies based on a variety of criteria. The type of UL policy you purchase may play a role in determining the cost, and the amount of coverage you choose will play a large role as well. In addition, your age, gender and health will be factors that your insurer is likely to consider when determining your premium. Note that UL, like other types of permanent insurance, is usually more expensive than term policies, since these policies are in effect for a longer period of time.

Is term or universal life insurance better?

There isn’t one single policy type that works best for everyone. The type of life insurance that is best for you depends on your needs. Term life can be a good option if you need coverage for a shorter period of time, like while you pay off a mortgage. It also tends to be cheaper than permanent types of insurance. Universal life is designed for those who need coverage for longer and also want flexibility in their policy. To determine the right type of life insurance coverage for you, you may want to work with a licensed agent.

What are some disadvantages of universal life insurance?

Despite the flexibility universal life insurance offers, a UL policy comes with some disadvantages. For example, if you purchase universal life insurance, you could pay higher premiums as the flexibility available costs more for the insurance company to provide. Additionally, returns are not guaranteed and there are typically caps on returns as well as minimum premiums. Beyond these potential drawbacks, customers should also be aware of the importance of monitoring their policy to ensure that premiums are paid on time and that the policy's cash value doesn’t sink too far and lead to a termination of the policy. This can be especially important for those who utilize flexible premium payments, policy loans or withdrawals.

Best Universal Life Insurance Companies

Universal life (UL) insurance is a type of permanent policy — meaning it’s designed to provide coverage for life as long as you pay your premiums. You may find it an attractive option if you're looking for a flexible policy that allows you to make changes to your death benefit and premium to fit your current financial situation as it changes over the years. UL policies also feature cash value accumulation, which you have the option to withdraw from or borrow against. In this guide, our insurance experts reviewed many company financial strength ratings, product and rider offerings, national availability and customer experience to find the best universal life insurance companies, to help you make the right decision for your own circumstances.

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Whole life insurance combines life insurance with an investment component.

Coverage for life
Tax-deferred savings benefit if premiums are paid
3 variations of permanent insurance: whole life, universal life and variable life include investment component

Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.

Fixed premium over term
No savings benefits
Outliving policy or policy cancellation results in no money back

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Key takeaways

Universal life insurance is a flexible type of life insurance that can be adjusted to meet changing needs.
Because of the flexibility, you may be in contact with your carrier more often, and as such, you may want to consider customer satisfaction scores and accessibility.
You may also want to consider a company with numerous rider options to help you personalize your coverage to your unique situation.

Best universal life insurance companies

Bankrate analyzed several universal life insurance companies by looking at the following factors: J.D. Power customer satisfaction scores from the 2024 U.S Individual Life Insurance Study, financial strength scores from AM Best, product and rider offerings and coverage capacity. We also used accessibility as a metric and researched whether each company had a mobile app, 24/7 customer service, an online portal and local agents.

Based on our research, the following life insurance companies offer some of the best universal life insurance coverage:

Life insurance company	Bankrate Score	J.D. Power customer satisfaction score	AM Best rating
Guardian	3.4	685/1,000	A++
Mutual of Omaha	4.5	659/1,000	A+
Nationwide	4.3	666/1,000	A+
Pacific Life	4.4	657/1,000	A+
State Farm	4.9	699/1,000	A++

3.4

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Guardian review

Why Guardian made our list: For those looking for a universal life insurance policy with quite a few product and rider options, Guardian may be a great choice. Guardian has consistently high financial strength and customer satisfaction ratings, including the highest AM Best financial strength rating possible: A++ (Superior), the second-highest J.D. Power customer satisfaction ranking and a low NAIC complaint index. For details about their universal life offerings and to get a quote, you’ll need to contact a financial advisor who sells Guardian products.
Pros
Strong financial strength ratings

High customer satisfaction rankings

NAIC Complaint Index Score indicates few customer complaints
Cons
Fewer product details on website compared to competitors

BEST GUARANTEED ISSUE LIFE INSURER

4.5

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Mutual of Omaha review

Why Mutual of Omaha made our list: For individuals who want to work with a company consistently earning above-average customer satisfaction rankings and making a strong impact in communities, you might want to consider Mutual of Omaha. It offers three different universal life products and an array of optional riders for customization, in addition to term and whole life insurance products. Additionally, the company is relatively accessible, with local agents, an automated 24/7 phone line for payments, an online chat tool and a customer portal.
Pros
Higher-than-average J.D. Power score

Several ways to contact the company

NAIC Complaint Index Score indicates few customer complaints
Cons
Fewer rider details on website compared to competitors

4.3

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Nationwide review

Why Nationwide made our list: Nationwide stands out among universal life insurance companies for its highly customizable policies — including a guaranteed universal life (GUL) product, which is focused on affordability. Nationwide also offers several ways to interact with your policy, including a mobile app, an online portal and local agents. The insurance company could also be a good choice if you like bundling your auto and home insurance with your life policy and keeping all your products in one place.
Pros
Higher-than-average J.D. Power score

Several ways to contact the company

Bundling options with home and auto
Cons
Above-average NAIC complaint index

BEST UNIVERSAL LIFE INSURER

4.4

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Pacific Life review

Why Pacific Life made our list: Pacific Life was awarded the 2025 Bankrate Award for Best Universal Life Insurer. It offers a comprehensive range of insurance products for policyholders, including indexed, guaranteed and variable UL coverage, in addition to a robust list of riders. These allow for flexibility, so you can customize your coverage to suit your needs and financial situation. The company has an above-average ranking with J.D. Power and has earned an A+ rating from AM Best for financial stability. Additionally, Pacific Life offers many consumer-friendly resources on its website, making even the most complex policies easy to understand and customize.
Pros
Above-average J.D. Power customer satisfaction score

Extensive list of riders

Many consumer-friendly resources online
Cons
No instant quotes available online

Some insurance products may not be available in all states; no policies sold in New York

BEST TERM LIFE INSURER

4.9

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read State Farm review

Why State Farm made our list: State Farm is ranked first in J.D. Power's 2024 Individual Life Insurance Study for Overall Customer Satisfaction, which suggests that the company takes the time and effort to meet its policyholders' needs efficiently and professionally. The company also has the highest possible ranking with AM Best. It features a highly interactive website and mobile app if you like to handle your insurance business online, and 19,000+ agents if you prefer to work with a local representative.
Pros
Highest J.D. Power score in the study

Superior AM Best financial strength rating

Highly accessible agent interactions
Cons
No options for indexed or variable universal life

Policies are not available in Massachusetts or Rhode Island

How to choose the best universal life insurance company

It can help to understand the different types of universal life insurance when you are considering your policy. Universal life insurance includes variable, guaranteed and indexed universal life insurance. For example, if you’re looking for the best IUL (indexed universal life insurance) make sure the insurer you’re interested in offers that product. Not all insurance companies offer all types of universal life insurance.

Permanent life insurance such as universal life is designed to remain in force throughout your life, so choosing the right policy is vital. Here are a few tactics you can take to find the best life insurance for your needs:

Consider third-party ratings: Ratings from companies like J.D. Power, the National Association of Insurance Commissioners (NAIC), AM Best, Standard & Poor’s (S&P) and Moody’s can help you get a well-rounded view of a carrier’s customer satisfaction levels and financial strength. This information could be useful when choosing a company that you may interact with for the rest of your life.
Compare quotes from multiple companies: Much like other forms of insurance, life insurance rates can vary not only between providers but between customers as well. Comparing quotes between several carriers may help you find the policy you want at a better cost when looking for a life insurance policy. If you’re unsure where to start looking for such companies, consider Bankrate’s write-up on affordable life insurance companies.
Think about working with a financial advisor: A financial advisor or licensed life insurance agent could help you determine what your specific needs are. Plus, they may have recommendations regarding companies, life insurance policy types or riders.

Frequently asked questions

Each life insurance carrier determines its own criteria for who may apply and qualify for each type of offered life insurance product. If one company refuses to insure you with such a policy, there may be another comparable company that won’t hesitate to offer this type of policy to you. It may require shopping around between providers to find the right one, but potential policyholders should be wary about giving up too soon when looking to qualify for any specific type of life insurance plan.
The cost of universal life insurance varies based on a variety of criteria. The type of UL policy you purchase may play a role in determining the cost, and the amount of coverage you choose will play a large role as well. In addition, your age, gender and health will be factors that your insurer is likely to consider when determining your premium. Note that UL, like other types of permanent insurance, is usually more expensive than term policies, since these policies are in effect for a longer period of time.
There isn’t one single policy type that works best for everyone. The type of life insurance that is best for you depends on your needs. Term life can be a good option if you need coverage for a shorter period of time, like while you pay off a mortgage. It also tends to be cheaper than permanent types of insurance. Universal life is designed for those who need coverage for longer and also want flexibility in their policy. To determine the right type of life insurance coverage for you, you may want to work with a licensed agent.
Despite the flexibility universal life insurance offers, a UL policy comes with some disadvantages. For example, if you purchase universal life insurance, you could pay higher premiums as the flexibility available costs more for the insurance company to provide. Additionally, returns are not guaranteed and there are typically caps on returns as well as minimum premiums. Beyond these potential drawbacks, customers should also be aware of the importance of monitoring their policy to ensure that premiums are paid on time and that the policy's cash value doesn’t sink too far and lead to a termination of the policy. This can be especially important for those who utilize flexible premium payments, policy loans or withdrawals.

Methodology

Life Bankrate Score

Our 2025 Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s financial strength, product and rider offerings, availability, customer experience and corporate sustainability. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

5

Overall Score

Ratings 40%
Coverage options 40%
Accessibility & process 20%

Tier 1 (Ratings): To determine a life insurance company’s financial health and reliability, we assessed several industry-standard ratings, such as J.D. Power, AM Best, Comdex, the National Association of Insurance Commissioners (NAIC), and credit agencies like Moody’s, Fitch and S&P.
Tier 2 (Coverage options): We assessed companies’ coverage options, availability and policy features to help policyholders find a provider that best meets their needs. We examined each company’s life insurance product lines, including term, whole and universal life options.
Tier 3 (Accessibility & process): To assess the ease and transparency of applying for coverage, we reviewed the simplicity of obtaining a quote and insurers' underwriting processes — including eligibility requirements. We also considered insurers’ community engagement.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.

Best universal life insurance companies

The Bankrate promise

The Bankrate promise

Key takeaways

Best universal life insurance companies

Overview

Pros and cons

Guardian standout features

BEST GUARANTEED ISSUE LIFE INSURER

Overview

Pros and cons

Mutual of Omaha standout features

Overview

Pros and cons

Nationwide standout features

BEST UNIVERSAL LIFE INSURER

Overview

Pros and cons

Pacific Life standout features

BEST TERM LIFE INSURER

Overview

Pros and cons

State Farm standout features

How to choose the best universal life insurance company

Frequently asked questions

Who qualifies for universal life insurance?

How much does universal life insurance cost?

Is term or universal life insurance better?

What are some disadvantages of universal life insurance?

Methodology

Life Bankrate Score