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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
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.