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Universal Life Insurance

Universal life insurance (often shortened to UL) is a type of permanent life insurance, primarily in the United States of America. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer, but has a contractual minimum rate (often 2%). When an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is a "Equity Indexed Universal Life" contract.

Universal life offers coverage for long-range goals like paying for your kids' college, supplementing your retirement income, and leaving a financial legacy for your family, universal life (UL) insurance can be a great fit. In addition to death benefit protection, it allows you the opportunity to build tax-deferred cash value that you can access for future use (provided all applicable premiums are paid). It also includes features like flexible premium payments that can generally be paid in any amount, at any time, and even in advance, allowing your policy to adapt to you. Not the other way around.