Life Insurance 04. Universal Life Insurance

Question 1

1. What is UNIVERSAL LIFE INSURANCE?

Answer 1

it is a kind of FLEXIBLE policy that lets you vary your premium payments. You can also adjust the face amount of your coverage.

Question 2

2. Increases in your coverage may require:

Answer 2

proof that you qualify for the new death benefit. The premiums you pay (less expense charges) go into a policy account that earns interest. Charges are deducted from the account.

Question 3

3. If your yearly premium payment plus the interest your account earns is less than the charges:

Answer 3

your account value will become lower. If it keeps dropping, eventually your coverage will end.

Question 4

4. If the account value keeps dropping, eventually your coverage will end. To prevent that, you may need to:

Answer 4

a. start making premium payments
b. increase your premium payment
c. or lower your death benefits.

Question 5

5. Even if there is enough in your account to pay the premiums, continuing to pay premiums yourself means that:

Answer 5

you build up more cash value.

Question 6

End

Answer 6

End