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What is a universal life insurance policy?

Updated: 9/19/2023
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13y ago

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A universal life insurance policy is a cash value type of life insurance policy.

With universal life insurance, you policy may build up cash values over time, similar to a whole life policy, but typically less expensive than whole life insurance.

Another feature of some universal life insurance policies is called a "no lapse guarantee" With this feature, as long as you pay your premiums, the policy is guaranteed to last to age 100 and beyond depending on the specific carrier you choose. Compare this to a whole life insurance policy where the premium requirements may vary and depend on how dividends and interest rates perform.

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Q: What is a universal life insurance policy?
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Related questions

What are the benefits of universal life insurance and what are the possible drawbacks of this type of policy?

What are the benefits of universal life insurance, and what are the possible drawbacks of this type of policy


Can variable universal life insurance be converted into a fixed account?

Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.


Is a flexible premium multifunded life insurance an annuity?

Its a Universal life insurance Policy.


is $241 a month too much for a $200,000 universal life insurance policy?

Is $241 a month too much to pay for a $200,000 universal life insurance policy?


What does it cost to borrow from a variable universal life insurance policy?

the interest rate is stipulated in writing in the life insurance policy


Which type of life insurance policy combines term insurance and investment elements?

Universal life


How does a Universal Life Insurance Policy work?

Universal Life Insurance Policies work by giving death benefits when one dies. Unlike other life insurance policies, universal life insurance policies generate interest over time.


Which of these is an element of universal life insurance?

This life insurance policy has two different types of death benefits.


How does one go about purchasing a Universal life insurance?

Universal life insurance is a form of life insurance, a policy used to provide a family with money after the death of the one getting the insurance. Universal life insurance can be purchased from many of the leading life insurance companies, including Nationwide and American Family.


What is a life insurance policy?

A universal life insurance policy is a cash value type of life insurance policy. With universal life insurance, you policy may build up cash values over time, similar to a whole life policy, but typically less expensive than whole life insurance. Another feature of some universal life insurance policies is called a "no lapse guarantee" With this feature, as long as you pay your premiums, the policy is guaranteed to last to age 100 and beyond depending on the specific carrier you choose. Compare this to a whole life insurance policy where the premium requirements may vary and depend on how dividends and interest rates perform.


Where can one find Group Universal Life Insurance?

Group universal life insurance, which is a voluntary life insurance policy can be found through MetLife. Here one wil find all information regarding the insurance.


What is it called when a insurance policy is paid up?

"Paid up" is actually the terminology used in the insurance industry when describing a policy that no longer requires any premiums. When a policy is "paid up", there are no further premiums required for the policy to continue on for what should be lifetime. This can only occur with permanent forms of Life insurance such as Whole Life, Universal Life and Variable Universal Life.