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 death of Irving, which at any other time would have attracted universal attention, having occurred while these things were transpiring, went almost unobserved. I shall have to read of it in the biography of authors.”
—Henry David Thoreau (1817–1862)
“A tragic irony of life is that we so often achieve success or financial independence after the chief reason for which we sought it has passed away.”
—Ellen Glasgow (1873–1945)
“... business training in early life should not be regarded solely as insurance against destitution in the case of an emergency. For from business experience women can gain, too, knowledge of the world and of human beings, which should be of immeasurable value to their marriage careers. Self-discipline, co-operation, adaptability, efficiency, economic management,—if she learns these in her business life she is liable for many less heartbreaks and disappointments in her married life.”
—Hortense Odlum (1892–?)