Universal life is a type of permanent life insurance that offers flexibility in premium payments and death benefits. It combines a death benefit with a cash value component that grows over time, allowing policyholders to adjust their coverage and premiums as their financial needs change. The cash value accumulates based on interest rates set by the insurer, and policyholders can borrow against it or withdraw funds. This flexibility makes universal life an attractive option for those seeking long-term financial planning, as it can adapt to changing circumstances while providing lifelong coverage.