8 Flashcards
Aka flexible premium adjustable life
Universal life
Policyowner has flexibility to increase the amnt of prem paid into policy and later decrease again
Universal life
Policyowner May skip paying prem and and policy will not lapse if sufficient cash value at time to cover monthly deductions for cost of ins (if cash val too small policy will expire)
Universal life
Amount needed to keep policy in force for current year
Minimum prem
Makes policy perform as annually renewable term product
Minimum prem
Recommended amount to be paid in policy in order to cover cost of ins protection and keep in force thru lifetime
Target premium
If insured skips premium payment in univ life policy
Premium may be deducted from cash value/won’t lapse
Allow Partial withdraw aka partial surrender however may be charge for each withdrawal and limits usually in how much and how often
Universal life policy
Universal life allow partial withdrawal but interest earned may be subject to
Taxation depending on plan and death benefit reduced by any partial surrender
Partial surrender from univ life
Not same as policy loan
Univ life option a
Level death benefit option
Univ life option b
Increasing death benefit option
