This kind of insurance provides coverage throughout your entire life and builds up savings over time. You can use the interest from your savings to help pay your premiums.
Life insurance with an investment component as well as a death benefit. You, the policyholder, have the right to increase or decrease the investment amount.
A type of permanent life insurance that permits the owner to vary the amount of protection and premiums to reflect changing needs. Earnings on the cash value accumulate tax-deferred.
is a permanent policy that gives the owner the right to vary premium payments and the death benefit within certain prescribed limits. The rate of return on the accumulation account fluctuates according to investment performance but will generally not fall below a guaranteed minimum rate of return.
A form of permanent cash value life insurance that provides both life insurance protection and a savings component with a guaranteed minimum rate of return, plus an additional return when the insurance company's investments perform well. Other key features include the ability to adjust both your premium payments and the amount of your insurance coverage.
A form of life insurance that combines term insurance protection with a savings feature. The portion of the funds allocated to the savings feature is invested in a tax-deferred account that typically earns interest at rates comparable to prevailing money market interest rates. A universal insurance policy offers the policy holder the flexibility to change the amount of insurance coverage, the amount of the premium payment and/or the portion of the premium payment allocated to the savings feature.
A highly modified form of whole life insurance. Part of the premium buys insurance coverage that will be paid if the insured dies. The rest of the premium is invested in high yield securities that are intended to increase the policy's cash value more rapidly than that of a traditional whole life policy.
A life insurance policy that combines term insurance and a side fund investment in one contract. Typical designs are interest-sensitive and allow for flexible premium payments which can be varied by the policy owner at will. Also known as Flexible Premium Adjustable Life.
A flexible-premium life insurance policy that allows the policyholder to change the death benefit and vary the amount or timing of premium payments.
A form of life insurance that combines low cost term protection with a savings component. The policy is highly flexible and allows the insured to increase or decrease premium payments and coverage at different intervals over the life of the policy.
Universal life insurance is one kind of life insurance that accumulates a cash value over time. However, there is no guaranteed amount of death benefit with Universal life insurance. Furthermore, the premium you pay with Universal life insurance is flexible or variable. Universal life insurance, also known as flexible premium life insurance, can be thought of as a kind of hybrid between life insurance and a traditional savings account.
ADJUSTABLE LIFE INSURANCE under which (1) premiums are flexible, not fixed; (2) protection is adjustable, not fixed; and (3) insurance company expenses and other charges are specifically disclosed to a purchaser.
A type of insurance contract that combines term insurance (death benefits_ with a tax-deferred savings/investment account that pays competitive money market interest rates.
a flexible adjustable life policy, which incorporates annually renewable term insurance with an interest bearing side fund (cash value)
A combination flexible premium, adjustable life insurance policy. The premium payer may select the amount of premium he or she can pay and the policy benefits are those which the premium will purchase. Or, the premium payer may change the amount of insurance and pay premium accordingly.
A form of whole life insurance in which premium payments and coverage is more flexible, allowing increases and decreases without additional sales charges.
Life insurance which combines the low-cost protection of term insurance with a savings component that is invested in a tax-deferred account, the cash value of which may be available for a loan to the policy holder.
Life insurance with flexible premiums, coverage and cash value.
Unlike traditional cash-value policies (known as "whole life"), universal life policy returns were freed from long-term, fixed-rate contracts and replaced with policies whose returns were tied to short-term interest rates and periodically adjusted. In addition, the policyholder can change premiums and death benefits.
A flexible type of life insurance policy under which the policyowner may change the death benefit, and or the premium from time to time with evidence of insurability for increases.
A type of permanent life insurance that allows the insured, after the initial payment, to pay premiums at any time and in virtually any amount, subject to certain minimums and maximums. The insured may decrease or increase the death benefit more easily than under a traditional whole life policy. To increase the death benefit, the insurance company usually requires the policyholder to furnish satisfactory evidence of continued good health. Also known as adjustable life insurance.
Life insurance that features an investment component along with a death benefit. The policyholder can choose to increase or decrease the investment amount, and many policies guarantee a minimum interest rate on the money in the policy's cash value. Looking for universal life product? Then be sure to check out Advisor.ca's Universal Life Search Engine.
Universal life insurance is permanent life insurance with premiums that are not guaranteed. To a certain degree one can “design” a premium on this type of policy. Universal life insurance often can be set up with a lower premium initially than whole life insurance. Premiums and values are based on projections of assumed interest rates, the cost of insurance (also known as mortality cost) and the insurance company's expenses. The actual premium paid may increase because interest rates may go lower or the projected cost of insurance may increase.
This policy couples Term life insurance and a side fund investment and puts them in one single contract. The contract will often allow flexible premium payments that the policyholder can have a greater control of.
A flexible premium life insurance policy under which the policy holder has the discretion of changing the payout and recipient of the death benefit multiple times (with satisfactory evidence of insurability for increases), as well as, vary the timing of premium payments.
This is permanent life insurance that has flexible premiums, face amounts and death benefit options. This type of insurance builds value from which insurance related charges are deducted. ()
A combination of monthly term life insurance, plus possible savings in an arrangement that provides limited flexibility as to death benefits and premium payment.
Permanent life insurance that combines the low-cost protection of term insurance with a savings element that is invested by the insurance company in a tax-deferred account, the cash value of which may be available for a loan or withdrawal to the policyholder. (See: permanent life insurance.)
A life insurance policy that provides more investment flexibility than that offered by whole life insurance. With this policy, you can choose the initial death benefit amount, but have the power to change it any time after the initial payment. You can also choose how and when you want to pay your premiums, within the policy's boundaries.
This policy is similar to a whole life policy but offers flexible premium amounts and time of payment. The amount of death benefit can be changed.
The key characteristic of universal life insurance is flexibility. Within limits, you can choose the amount of insurance and the premium you wish to pay. The policy will stay in force as long as the policy value is sufficient to pay the costs and expenses of the policy. The policy value is "interest-sensitive," which means that it varies in accordance with the general financial climate. Lowering the death benefit and raising the premium will increase the growth rate of your policy. The opposite also is true. Raising the death benefit and lowering the premium will slow the growth of your policy. If insufficient premiums are paid, the policy could lapse without value before the maturity date is reached. (The maturity date is the time your policy ceases and cash surrender value would be payable if the policyholder is still living.) Therefore, it is your responsibility to pay consistently a premium that is high enough to ensure that your policy´s value will be adequate to pay the monthly cost of the policy. The company is required to send you an annual report and also to notify you if you are in danger of losing your policy due to insufficient value.
An adjustable type of life insurance that provides both term life insurance coverage and a savings vehicle side account with a guaranteed minimum return on the investment. This type of life insurance also allows the policyowner to change the amount of coverage and premiums throughout the duration of coverage. Return to the top
A flexible-premium, adjustable-benefit type of permanent life insurance that accumulates cash value.
A variation of whole life insurance that combines variable investment options with term life insurance. It provides both the pure death protection and cash value buildup of whole life insurance with variability in the face amount, death benefit, and other features.
permanent life insurance plan that provides life insurance and includes a cash value with a wide range of investment options for tax-sheltered growth of the cash value.
A type of insurance where premiums are paid regularly. Unlike whole life, these premiums may vary, as part of the premium is allocated to a variable interest account. Like whole life, the premiums build a cash value.
a flexible form of life insurance in which the policyholder may change the amount of death benefit (with evidence of insurability for increases), the amount of premium payments, and when premiums are paid.
A flexible life insurance contract that clearly separates its insurance, investment, and expense elements.
A life insurance policy where premiums (less expense charges) are credited to an investment account from which periodic charges for life insurance coverage are deducted and to which income is credited. Usually, the policy owner can vary the amount and timing of premium payments and change the amount of insurance.
A type of life insurance that combines a death benefit with a savings element which accumulates tax deferred at current interest rates. Under a universal life insurance policy, the policyholder can increase or decrease his or her coverage, with limitations, without purchasing a new policy.
A flexible type of insurance that would allow you to change your beneficiary if necessary as well as the amount or schedule of payments. Like whole life insurance, there is a savings piece (an accumulation fund) that is meant to earn interest to help pay your premium.
A hybrid insurance product that combines the protection of a conventional term insurance policy with cash values and investment yields. Unlike traditional whole life policies, universal life divides death protection and cash value accumulations into separate components.
Unlike traditional cash-value policies (known as "whole life"), universal life policy returns were freed from long-term, fixed rate contracts and replaced with policies whose returns were ties to short-term interest rates and periodically adjusted. In addition, premiums and death benefits can be changed by the policyholder. J K M N O X Y Z
Life insurance that provides for flexible premium payments, with appropriate adjustments to cash values and death benefits when premiums are paid.
A form of life insurance that is characterized by its flexible premiums, face amounts and unbundled pricing factors.
A flexible premium life insurance policy under which the policyowner may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments. Premiums (less expense charges) are credited to a policy account from which mortality charges are deducted and to which interest is credited at rates, which may change from time to time.
A flexible life insurance policy allowing the policyholder to change the death benefit from time to time, and vary the amount or time of a premium payment. ariable Annuity: An annuity contract in which the amount of each periodic income payment may fluctuate. The fluctuation may be related to securities market values, a cost of living index, or some other variable factor.
A type of permanent life insurance that allows you, after your initial payment, to pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. This policy also permits the insured to reduce or increase the death benefit more easily than under a traditional whole life policy. To increase a death benefit, the insurance company usually requires a person to furnish satisfactory evidence of continued good health.
Life insurance that allows the holder to vary the amount and timing of premiums, and to change the death benefit.
A flexible type of policy that lets you periodically adjust your premium payments and the amount of your coverage.
A combination of term insurance with a cash savings value. Allows the policyowner to adjust the death benefit or the cash value depending upon his needs.
A kind of flexible policy that lets you vary your premium payments and adjust the face amount of your coverage.
Universal life insurance is a permanent life insurance product in which the internal policy charges and interest crediting components are specifically broken out separately in the policy. A universal life insurance policy accumulates cash value at an interest crediting rate declared by the company. Within certain limits, the policy owner can choose the premium he or she wishes to pay and this affects the policy's cash value. Each month, a monthly deduction to cover the cost of the insurance protection provided by the policy is deducted from the policy cash value.
A form of cash value life insurance under which the premiums and amount of coverage are flexible. After the first-year premium, additional premiums and coverage can be adjusted to better meet the needs of the policyowner.
Universal life insurance is a combination of whole life insurance and term life insurance. The pricing of the policy is based on annual renewable term life insurance and increases each year. The premiums are flexible and are designed to cover the costs of the insurance with the difference being applied to a cash value that grows at a given interest rate. Universal life polices are more expensive than term and cheaper than whole life. Some universal life policies offer long term guarantees but most do not. If considering universal life, make sure than you buy a policy hat offers long-term guarantees.
A type of permanent life insurance in which the cash value varies with the purchaser’s payments and the insurer’s investment returns.
A flexible premium policy that combines protection against premature death with a type of savings vehicle, known as a cash value account, that typically earns a money market rate of interest. Death benefits can be changed during the life of the policy within limits, generally subject to a medical examination. Once funds accumulate in the cash value account, the premium can be paid at any time but the policy will lapse if there isn't enough money to cover annual mortality charges and administrative costs.
A life insurance term policy that is renewed each year and which has both an insurance component and an investment component. The investment component invests excess premiums and generates returns to the policyholder.
Type of life insurance that combines the low cost coverage of term life insurance with a tax-deferred savings account that invests in money-markets. Without incurring additional sales charges, this type of policy allows the holder to increase or decrease coverage or to shift a specific amount of premiums into the savings account. See: Money Market; Tax Deferred; Variable Life Insurance; Whole Life Insurance
Two-part contract containing permanently renewable term insurance and a cash value account, which generally earns interest at a higher rate than a traditional policy. Universal life policies have adjustable premiums and an adjustable death benefit. Excess premiums, after the company deducts its fee and a monthly cost for the term coverage, are deposited in the cash value account where they earn a valuable rate of interest.
This Cash Value Life Insurance Policy is a flexible premium adjustable policy. Its flexibility makes it a popular choice because it allows the policyowner to make numerous choices about the face value amount and/or the premium. See our Universal Life Insurance Guide.
Universal Life is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, which is drawn from the cash value if no premium payment is made that month.