Universal Life Insurance policies are sold as investments that combine insurance protection with savings. Actually, a Universal Life Policy can be defined as a flexible premium deposit fund that is combined with monthly renewable term insurance.
Universal Life insurance works in the following manner:
An initial specific premium is paid. Then expenses are deducted from the gross premium and the balance is credited to the policy’s initial cash value. Secondly , a monthly mortality charge is conducted from the cash value to pay for the pure insurance protection. And finally, the remaining cash value is then credited with interest at a specified rate.
The basic characteristics of universal life are as follows:
- There are two forms available
- Protection, savings, and expense components are separated.
- There is a stated investment return.
- Considerable flexibility
- Cash withdrawals are permitted.
To learn more about Universal Life Insurance contact Acova Insurance Agency today at 313-388-0100, we help you decide which policy is best for you.