Universal Life Insurance

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.

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