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:
“There isn’t any universal reason;
And no one but a man would think there was.
You don’t catch women trying to be Plato.”
—Robert Frost (1874–1963)
“I stand in awe of my body, this matter to which I am bound has become so strange to me. I fear not spirits, ghosts, of which I am one,—that my body might,—but I fear bodies, I tremble to meet them. What is this Titan that has possession of me? Talk of mysteries! Think of our life in nature,—daily to be shown matter, to come in contact with it,—rocks, trees, wind on our cheeks! the solid earth! the actual world! the common sense! Contact! Contact! Who are we? where are we?”
—Henry David Thoreau (1817–1862)
“For there can be no whiter whiteness than this one:
An insurance man’s shirt on its morning run.”
—Gwendolyn Brooks (b. 1917)