Universal Life

Business, Legal & Accounting Glossary

Definition: Universal Life



Full Definition of Universal Life


Universal life insurance is a life insurance policy which combines the low-cost protection of term insurance with a savings component more typical of whole life insurance policies. A portion of the monthly premium of a universal life policy is automatically invested in a tax-deferred savings account. There are two major advantages to a universal life policy. One major advantage of a universal life policy is that the savings portion of a universal life policy can be used to build net worth over time. The second major advantage of a universal life policy is its savings feature. Using this savings feature, a universal life policyholder may secure an extremely low-interest loan. If the policyholder should die without the loan being repaid, the amount outstanding on the loan is deducted from any benefits paid by the universal life policy.


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https://payrollheaven.com/define/universal-life/
Modern Language Association (MLA):
Universal Life. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 26, 2020 https://payrollheaven.com/define/universal-life/.
Chicago Manual of Style (CMS):
Universal Life. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/universal-life/ (accessed: September 26, 2020).
American Psychological Association (APA):
Universal Life. PayrollHeaven.com. Retrieved September 26, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/universal-life/

Definition Sources


Definitions for Universal Life are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February, 2020 | 2 Views.