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:
“And universal Nature, through her vast
And crowded whole, an infinite paroquet,
Repeats one note.”
—Ralph Waldo Emerson (1803–1882)
“Had Dr. Johnson written his own life, in conformity with the opinion which he has given, that every man’s life may be best written by himself; had he employed in the preservation of his own history, that clearness of narration and elegance of language in which he has embalmed so many eminent persons, the world would probably have had the most perfect example of biography that was ever exhibited.”
—James Boswell (1740–95)
“For there can be no whiter whiteness than this one:
An insurance man’s shirt on its morning run.”
—Gwendolyn Brooks (b. 1917)