Hello,
Let's discuss water pumps. You engine has two. One is the 'raw water' pump. This pump sucks up seawater (fresh water if you're in a river or lake, salt water if you're in an ocean, sound, bay, etc.). The other water is the 'coolant' pump. Just like a car or truck has a water pump to circulate coolant through the engine block, your Universal M25 has a water pump to circulate coolant through the engine block). Where the car has a radiator to cool the coolant, the boat has a heat exchanger. The automotive radiator is an 'air to water' heat exchanger, the marine heat exchanger is 'water to water' meaning that the seawater is used to cool the coolant. Note that the seawater and coolant never mix, they are kept separate inside the heat exchanger.
Note that your engine also has a thermostat (just like a car). When the coolant reaches a set temperature, the thermostat opens and allows the coolant to flow through the heat exchanger.
While the coolant pump can wear out and need replacement, that is pretty rare. Mote common is for the thermostat to fail closed. This will cause the engine to overheat. Signs of a bad coolant pump are leaks of coolant (not water) and an overheating engine.
Good luck,
Barry