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 ordinary is simply the universal observed from the surface, that the direct approach to reality is not without, but within. Touch life anywhere ... and you will touch universality wherever you touch the earth.”
—Ellen Glasgow (1873–1945)
“—No, no thou hast not felt the lapse of hours!
For what wears out the life of mortal men?
‘Tis that from change to change their being rolls;
‘Tis that repeated shocks, again, again,
Exhaust the energy of strongest souls
And numb the elastic powers.”
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“The Republican convention, an event with the intellectual content of a Guns’n’Roses lyric attended by every ofay insurance broker in America who owns a pair of white shoes.”
—P.J. (Patrick Jake)