Universal Life
It differs from whole life insurance in that it allows
the policy owner to vary, with limitations, the amount and
timing of premium payments and the death benefit. Cash values
are accumulated by crediting premium payments and interest
to a fund from which deductions are made for expenses and
cost of insurance. The rates at which the interest is credited
are declared by the company or may be specified in the contract.
Like term insurance, universal life insurance policies usually
have two sets of premiums - guaranteed maximum premiums,
and “current premiums”, which may be lower, but which can
be changed by the company, up to the maximum.
mum interest guarantee. Because of its flexibility, a universal
life policy can also be structured to operate like term insurance.
Variable Life
It differs from whole life insurance and universal life insurance
in that policy owners direct the distribution of their premium
payments among several different accounts or funds rather
than of the company’s choosing. Typical account choices are:
common stock, bond, mortgage, and money-market accounts. With
this type of policy, the death benefit and cash value benefits
vary in relation to the value of the investments underlying
the policy. If the value of the accounts increases, so will
the benefits; if the value of the account decreases, so will
the benefits, subject to a minimum guarantee. Variable life
insurance is more risky to the policy owner than the other
forms of cash value insurance, but there is a possibility
of greater returns.
Variable Universal Life Insurance
It combines the flexibility of universal life insurance with
the investment account features of variable life insurance.
Life Insurance 1
Life Insurance 2
Life Insurance 3
Life Insurance 4
Life Insurance 5
Life Insurance 6
Life Insurance 7
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