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 call contrary to nature what happens contrary to custom; nothing is anything but according to nature, whatever it may be, Let this universal and natural reason drive out of us the error and astonishment that novelty brings us.”
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“The light of memory, or rather the light that memory lends to things, is the palest light of all.... I am not quite sure whether I am dreaming or remembering, whether I have lived my life or dreamed it. Just as dreams do, memory makes me profoundly aware of the unreality, the evanescence of the world, a fleeting image in the moving water.”
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“For there can be no whiter whiteness than this one:
An insurance man’s shirt on its morning run.”
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