An unbundled life insurance policy is a type of financial protection plan that provides cash to beneficiaries upon a policyholder's death. An unbundled life insurance policy contains a savings and investment component that the policyholder can use during his or her lifetime.

Provisions of the policy do not have expiration dates and the policyholder can adjust the amount and timing of premium payments tied to the amount of the death benefit while the policy is in force. Unbundled life insurance is also called universal life insurance.