Universal life insurance - UL - is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy or credited on the account at a rate specified by the insurance company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against and reduceed the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any. But universal life has its own disadvantages which stem primarily from this flexibility. The policy lacks the fundamental guarantee that the policy will be in force unless sufficient premiums have been paid and cash values are not guaranteed.