Universal life (UL) is a relatively new insurance product designed to provide continuous insurance coverage and greater flexibility in premium payment of any greater increase in cash value. There are several types of universal life insurance policy, which includes the rate-sensitive (also known as traditional fixed universal life insurance ), variable universal life (Vul), a guaranteed death benefit, and equity indexed universal life insurance.
Universal life insurance is included for cash. Fee income growth of cash values, but the cost of insurance (and other charges by the insurance company) would reduce monetary value. But apart from Vul, interest credited to cash value of the company by a specified amount of cash value increases. The Vul, monetary value in relation to the ebb and flow of political power to the owner of the investment subaccounts selected. The redemption value of the policy, the amount to be paid to the policyowner qualify for the buy-back fee, if any.
Universal life insurance contracts with the perceived disadvantages of whole life - so that premiums and death benefit are fixed. Universal life premiums and death benefit flexibility. Except in relation to the guaranteed death benefit universal life, this flexibility comes at a price: a reduced warranty.
