For those with unstable income, universal life insurance is a viable option. It offers the ability to pay varying amounts on each payment. In addition, to add incentive, higher payments will build up higher interests. This occurs because with universal life insurance, part of each payment goes to the insurance company for investing. A minimum interest rate, usually around 4%, will be stipulated at the time of the policy's creation, but the possibility for increases exists. In addition, taxes are deferred rather than accumulated on these savings because they are being invested.