If you have a flexible income (e.g. if you are self employed) this type of life insurance may provide a solution. Universal life insurance policies normally allow you to raise or lower your premiums as you go. With many policies you can even go for a certain amount of time without paying premiums at all. This is an advantage when, for example, you take an extended break or are in between jobs and have less income.

The basic rule of universal life insurance is: the more you pay into the life insurance policy, the more will be paid out in the event of death. There is some variation in what's allowed from one policy to another, so you'll have to read the fine print. Generally, you have the freedom to build your life insurance coverage quickly by making large payments (when the going is good). You earn interest on the cash value of the policy, which helps grow your equity.

You pay a policy charge, which is deducted from the funds available in your life insurance equity on a regular basis. If you prefer not to pay in to your life insurance for a time, the policy charges will simply be deducted from what is already there. If you have a large equity, you will probably earn at least enough interest to cover the policy charges. If you have a flexible income and need allowance to make higher or lower payments (or none at all for a certain amount of time) as your situation changes, then a universal life insurance policy could work well for you.