The Three Major Categories of Cash Value Life Insurances
Universal Life
- Universal life insurance is a policy that can be maintained indefinitely. Unlike whole life insurance, neither the cash value of the policy, the death benefit, nor the premium is guaranteed. Universal life insurance is a type of equity vehicle. The policyholder can pay as much or as little into the policy as she desires above a minimum premium. The company invests these funds into specific investment vehicles such as bonds and places the investment and returns into a cash value account.
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