Universal life insurance (often shortened to UL) is a type of permanent life insurance, primarily in the United States of America. Under the terms of the policy, the excess of premium payments above the current cost of insurance are credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer, but has a contractual minimum rate of between 2% and 4%. When a earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is a "Equity Indexed Universal Life" contract.
Read more about Universal Life Insurance: Similar Life Insurance Types, Uses of Universal Life Insurance, Living Benefits of Life Insurance, Miscellaneous
Famous quotes containing the words universal, life and/or insurance:
“The earliest instinct of the child, and the ripest experience of age, unite in affirming simplicity to be the truest and profoundest part for man. Likewise this simplicity is so universal and all-containing as a rule for human life, that the subtlest bad man, and the purest good man, as well as the profoundest wise man, do all alike present it on that side which they socially turn to the inquisitive and unscrupulous world.”
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