Universal Life Insurance
/yoo-nuh-VUR-sul lyf/
Flexible permanent coverage with adjustable premiums.
Definition
Universal life insurance is permanent coverage with flexible premiums and death benefits. The cash value earns interest based on current rates. You can adjust premiums and death benefits within limits, making it more flexible than whole life but with less guarantees.
Example
As his income grew, Robert increased his universal life death benefit and premium contributions.
More Life Insurance Terms
Coverage for a specific period with no cash value.
Permanent coverage with guaranteed cash value.
The amount paid to beneficiaries when the insured dies.
The person who receives the insurance payout.
The savings component of permanent life insurance.
The stated amount of coverage on a life insurance policy.
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