Universal Life Insurance

Universal Life is a flexible-premium policy, that unlike traditional cash value life insurance, divides the pure insurance protection and the cash value accumulation into separate and distinct components. Premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance charge, and any other policy charges and fees which are drawn from the cash value if no premium payment is made that month. The cash value of the policy at its maturity depends upon the value of the investments made by the insurer.