UniversallifeinsuranceFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchIthasbeensuggestedthatthisarticlebecheckedtoensureaneutralpointofview.Discussioncanbefoundonthetalkpage.(January2015)(Learnhowandwhentoremovethistemplatemessage)Universallifeinsurance(oftenshortenedtoUL)isatypeofcashvalue[1]lifeinsurance,soldprimarilyintheUnitedStates.Underthetermsofthepolicy,theexcessofpremiumpaymentsabovethecurrentcostofinsuranceiscreditedtothecashvalueofthepolicy,whichiscreditedeachmonthwithinterest.Thepolicyisdebitedeachmonthbyacostofinsurance(COI)chargeaswellasanyotherpolicychargesandfeesdrawnfromthecashvalue,evenifnopremiumpaymentismadethatmonth.Interestcreditedtotheaccountisdeterminedbytheinsurerbuthasacontractualminimumrate(often2%).Whenanearningsrateispeggedtoafinancialindexsuchasastock,bondorotherinterestrateindex,thepolicyisan"Indexeduniversallife"contract.Suchpoliciesoffertheadvantageofguaranteedlevelpremiumsthroughouttheinsured'slifetimeatasubstantiallylowerpremiumcostthananequivalentwholelifepolicyatfirst.Thecostofinsurancealwaysincreases,asisfoundonthecostindextable(usuallyp.3ofacontract).Thatnotonlyallowsforeasycomparisonofcostsbetweencarriersbutalsoworkswellinirrevocablelifeinsurancetrusts(ILITs)sincecashisofnoconsequence.Contents1Similarlifeinsurancetypes2Usesofuniversallifeinsurance3Livingbenefitsoflifeinsurance3.1Loans3.2Withdrawals3.3Collateralassignments4Types4.1Singlepremium4.2Fixedpremium4.3Flexiblepremium5Criticism5.1Unlawfullysoldtoindividualsasaninvestment5.2Conflictofinterest5.3Misunderstoodrisktopolicyholders5.4Useasataxhaven6Miscellaneous7ReferencesSimilarlifeinsurancetypes[edit]Asimilartypeofpolicythatwasdevelopedfromuniversallifeinsuranceisthevariableuniversallifeinsurancepolicy(VUL).VULletsthecashvaluebedirectedtoanumberofseparateaccountsthatoperatelikemutualfundsandcanbeinvestedinstockorbondinvestmentswithgreaterriskandpotentialgrowth.Additionally,thereistherecentadditionofindexeduniversallifecontractssimilartoequity-indexedannuitiesw