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Universal Life Insurance

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Definitions for: universal life insurance

Dictionary of Finance and Investment Terms

universal life insurance

form of life insurance, first marketed in the early 1980s, that combines the low-cost protection of term life insurance with a savings portion, which is invested in a tax-deferred account earning money-market rates of interest. The policy is flexible; that is, as age and income change, a policyholder can increase or decrease premium payments and coverage, or shift a certain portion of premiums into the savings account, without additional sales charges or complications. A new form of the policy; called universal variable life insurance, combines the flexibility of universal life with the growth potential of variable life.

Universal Life Insurance

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