Which policy feature makes a universal life policy different from a whole life policy quizlet?
Which policy feature makes a universal life policy different from a whole life policy? "A flexible premium schedule". The policy feature that makes universal life different from whole life insurance policies is its flexible premium schedule.
How is universal life different from whole life?
Whole life and universal life (UL) insurance are both types of permanent life insurance. Whole life insurance offers consistent premiums and guaranteed cash value accumulation. Universal policies provide flexible premiums and death benefits but have fewer guarantees.
How does whole life differ from universal life insurance quizlet?
There are two main types of permanent life insurance: Whole life insurance - Caters to long-term goals by offering consumers consistent premiums and guaranteed cash value accumulation. Universal life insurance - Gives consumers flexibility in the premium payments, death benefits and the savings element of their policy.
What is the difference between life insurance and universal life insurance?
Term life insurance covers the policyholder for a specific period of time, such as 10 or 20 years. Universal life is a type of permanent coverage that can last for the policyholder's lifetime. In addition to a death benefit (like a term life policy), universal life also has a savings component that builds up over time.
What is the difference between whole and universal life insurance?
The cash value within a whole life insurance policy builds at a fixed rate. On the other hand, universal life insurance allows you to adjust both your premiums and the death benefit to fit your needs better. This type of policy can also grow cash value. The rate of growth depends on the type of universal life insurance you buy:
What is a universal life policy?
Unlike a traditional whole life insurance policy, a universal life policy gives you more options for how you pay premiums and allows you to adjust the death benefit over time. In addition, many universal life policies let you build up savings – known as “cash value” – that earns interest tax-deferred.
How do universal life insurance premiums work?
Each time that you pay the premium on your universal life insurance policy, part of the money goes toward the death benefit and another part goes into the policy's cash value. The money in the cash value portion of your policy earns interest.