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:
“It is long ere we discover how rich we are. Our history, we are sure, is quite tame: we have nothing to write, nothing to infer. But our wiser years still run back to the despised recollections of childhood, and always we are fishing up some wonderful article out of that pond; until, by and by, we begin to suspect that the biography of the one foolish person we know is, in reality, nothing less than the miniature paraphrase of the hundred volumes of the Universal History.”
—Ralph Waldo Emerson (1803–1882)
“I therefore, the prisoner in the Lord, beg you to lead a life worthy of the calling to which you have been called, with all humility and gentleness, with patience, bearing with one another in love, making every effort to maintain the unity of the Spirit in the bond of peace.”
—Bible: New Testament, Ephesians 4:1-3.
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—John Dos Passos (1896–1970)