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:
“We have had many harbingers and forerunners; but of a purely spiritual life, history has afforded no example. I mean we have yet no man who has leaned entirely on his character, and eaten angels’ food; who, trusting to his sentiments, found life made of miracles; who, working for universal aims, found himself fed, he knew not how; clothed, sheltered, and weaponed, he knew not how, and yet it was done by his own hands.”
—Ralph Waldo Emerson (1803–1882)
“The child who enters life comes not with knowledge or intent,
So those who enter death must go as little children sent.
Nothing is known. But I believe that God is overhead;
And as life is to the living, so death is to the dead.”
—Mary Mapes Dodge (1831–1905)
“In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, woman’s premium is a husband, she pays for it with her name, her privacy, her self-respect, her very life, “until death doth part.””
—Emma Goldman (1869–1940)