A universal life contract is a type of life insurance policy that offers a flexible premium payment structure. The policy includes a savings component that earns interest and grows over time, which can be used to pay future premiums or as a source of cash value. Alternative terms that can be used to describe universal life contracts include flexible premium life insurance, adjustable life insurance, and current assumption life insurance. These synonyms emphasize the policy's flexibility and the ability for policyholders to adjust their premiums based on their needs. Universal life policies are popular due to their combination of life insurance coverage and investment opportunities, making them a versatile choice for many individuals.