2007-03-11 00:29:31 · 5 answers · asked by shrikant g 1 in Business & Finance ➔ Insurance
A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance) which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change. In addition, unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums.
Investopedia Says... Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly.
2007-03-11 00:32:37 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
Universal Life is a modified version of a Whole Life policy.
Whole life policies in the past had guaranteed rates of return on the cash balance. Universal Life policies were created to allow for a more flexable rate of return for the cash balance interest rate. Essentially, every thing else about the policy is the same.
2007-03-11 22:07:12 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Sounds like life insurance, Im not sure what the term universal would reference
- Carye
http://www.IBOPlus.com/40485726
http://www.EveryoneBenefits.com/40485726
2007-03-11 00:50:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I'm not sure if you mean universal life insurance or universal health care. If it's life insurance, your first answerer is right. If it's health care, it means that everyone citizen would have access to low-cost, high-quality health care.
http://en.wikipedia.org/wiki/Universal_health_care
http://www.amsa.org/uhc/
2007-03-11 00:42:09 · answer #4 · answered by Hilary M 3 · 0⤊ 0⤋
prob refers to health care coverage, such as exists in Canada.
2007-03-11 00:32:52 · answer #5 · answered by David B 6 · 0⤊ 0⤋