YOU ASK:

What is the definition of Universal Life Insurance?

WE ANSWER:

Universal Life Insurance refers to a permanent life insurance policy that has a life insurance and a savings component. The savings component makes use of a cash value account that provides interest rates. These interest rates are either set by the insurance company or are based on a financial index.

When the policyowner pays his premiums, any amount exceeding the cost of insurance and other fees goes to the cash value account. In turn, the cash value account can be used to pay for the premiums when the policyowner is not able to make the payments for a certain month.

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