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Universal life insurance (often shortened to UL) is a type of cash value [1] life insurance, sold primarily in the United States.Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.
The advantages of whole life insurance are its guaranteed death benefits; guaranteed cash values; fixed, predictable premiums; and mortality and expense charges that do not reduce the policy's cash value. The disadvantages of whole life are the inflexibility of its premiums and the fact that the internal rate of return of the policy may not be ...
The way cash value grows depends on the specific type of policy — whether it’s whole life, universal life or variable life. These policies differ in how they earn interest, with some offering ...
Universal life insurance offers permanent coverage with a unique twist—flexibility.
Cash value refers to an investment component in life insurance that grows tax-free over the course of the policy's life. Cash value is a part of permanent life insurance policies and is a living benefit that the policyholder can use during his or her lifetime. [1]
The cash value portion of a whole-life policy is added to a savings account, and your balance will earn interest. Universal life : With universal life insurance , you can modify your premiums ...
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