Universal life is more flexible than whole life, and is a transparent version of Whole Life. The insurance company clearly separates the insurance and investment components. The client chooses from several different cost of insurance methods and many investment options. The premiums and death benefit are variable and can be adjusted according to the terms of the policy, which vary by carrier. Basically, there is a minimum premium and a maximum premium and you can choose to pay any amount between those two figures. Any excess above the minimum is used to invest in the many choices provided by the insurance carriers within the Universal Life policy on a tax deferred basis within the limits prescribed by the Income Tax Act.