Reply To: Universal life Insurance
Vanshika Gupta
With universal life insurance, you pay a monthly fee that splits into two parts: One covers life insurance and the other goes into savings and investment.
It’s meant to be more flexible by allowing you, the policy holder, to choose how much premium you pay within a certain range. The minimum amount is set by the cost of insurance, which includes your death benefit and administrative fees.
Anything you pay over this premium is added to your cash value, which is guaranteed to grow according to a minimum annual interest rate set by the insurance company (though it can grow faster depending on how well the market is doing).