What is Universal Life Insurance?
Universal life insurance is a permanent life insurance product in which the internal policy charges and interest crediting components are specifically broken out separately in the policy. A universal life insurance policy accumulates cash value at an interest crediting rate declared by the company. Within certain limits, the policyowner can choose the premium he or she wishes to pay and this affects the policy’s cash value. Each month, a monthly deduction to cover the cost of the insurance protection provided by the policy is deducted from the policy cash surrender value.
A universal life insurance policy is an interest-sensitive, flexible-premium, adjustable life insurance policy. The policy owner selects the amount of insurance (selected amount) and periodic premium (planned premium) for which to be billed. Net premiums paid plus current interest credited are combined to form the policy account value. The cost of insurance, per policy charges, per thousand charges, and other policy and rider charges are deducted monthly from the policy account value.
Universal Life is permanent insurance with flexibility that allows you to create a policy designed specifically for you and your family. Premiums are flexible and cash values vary based upon actual interest earned, mortality expenses incurred and expense charges imposed by the insurance company. Feel free to call us with any other questions you may have toll free at 1-800-823-4852 from 8 a.m. to 5 p.m. Pacific Time, Monday through Friday.
Universal life insurance is a permanent insurance product in which the internal policy charges and interest crediting components are specifically broken out separately in the policy. Universal life insurance cash value is dependent on the investment returns credited. Within certain limits, the policy owner can choose the premium he or she wishes to pay and this will determine how the policy values develop. The policy owner benefits from current investment and expense experience.
A. Universal life insurance provides permanent life insurance coverage and any cash value accumulates on a tax-deferred basis. The death benefit and cash value depend on the interest rate declared by the insurance company. Universal Life policies provide insurance to protect what you have today and to help you provide for what you want tomorrow.
