Universal life insurance Sunday, June 18, 2006
A hybrid insurance product that combines the protection of a conventional term insurance policy with cash values and investment yields. Unlike traditional whole life policies, universal life divides death protection and cash value accumulations into separate components.
A life insurance term policy that is renewed each year and which has both an insurance component and an investment component. The investment component invests excess premiums and generates returns to the policyholder.
A flexible premium life insurance policy under which the policyholder may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at varying rates.
A life insurance product under which premiums are generally flexible, the level of death benefits may be adjusted and expenses and other charges are specifically disclosed to the policyholder and deducted from their account balance.
A flexible policy, in which the cost of the premium, the savings value and the coverage can change as your needs change.
Life insurance with an investment component as well as a death benefit. You, the policyholder, have the right to increase or decrease the investment amount.
A highly modified form of whole life insurance. Part of the premium buys insurance coverage that will be paid if the insured dies. The rest of the premium is invested in high yield securities that are intended to increase the policy's cash value more rapidly than that of a traditional whole life policy.
A flexible premium policy that combines protection against premature death with a type of savings vehicle, known as a cash value account, that typically earns a money market rate of interest. Death benefits can be changed during the life of the policy within limits, generally subject to a medical examination. ...
In many ways this policy looks like a whole life policy, but it is more flexible. It combines a term insurance with an investment program that pays a return based on market rates of interest. After making a required initial premium payments, the insured can make future payments at any time and in any amount. With this flexibility, the insured can design how much of the payment should apply to the insurance part of the policy and how much to the cash value. ...
Type of life insurance that combines the low cost coverage of term life insurance with a tax-deferred savings account that invests in money-markets. Without incurring additional sales charges, this type of policy allows the holder to increase or decrease coverage or to shift a specific amount of premiums into the savings account.
A type of participating whole life insurance policy.
This kind of insurance provides coverage throughout your entire life and builds up savings over time. You can use the interest from your savings to help pay your premiums.
Universal life insurance is permanent life insurance with premiums that are not guaranteed. To a certain degree one can “design” a premium on this type of policy. Universal life insurance often can be set up with a lower premium initially than whole life insurance. Premiums and values are based on projections of assumed interest rates, the cost of insurance (also known as mortality cost) and the insurance company’s expenses.
A flexible life insurance contract that clearly separates its insurance, investment, and expense elements.
A type of whole life policy that allows the customer flexibility in choosing and changing terms of the policy.
Universal Life (UL) (often called VUL, or Variable universal life insurance) is a type of life insurance based on an account value. That is, an account is established with the insurer, which is credited each month with interest, and debited each month by a cost of insurance (COI) charge. The interest credited the account is determined by the insurer; often it is pegged to a financial index.
posted by your Insurance @ 9:41 AM,
