What is Universal Life insurance?

Hey Jim
I had the same question and it has been answered here:
http://www.theroundtable.org/topics/show/278

Universal life insurance has three different components – the death benefits, the cash value or investment component and the expense element. Basically, as the premiums are paid, they are credited to your policy after deducting administrative charges. Death benefit costs or any applicable rider or supplement costs are deducted monthly from the policy value. Along with this, the interest from the cash element is credited to the policy. In case this cash value of the policy is surrendered, it will be returned to the policy holder minus any applicable surrender charges. But, unlike whole life insurance, this type of policy differentiates between each component and allows the policy holder the flexibility (with certain regulations) to modify the premium rate or face amount in the event of any change of circumstance or unplanned requirements.