Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
When you pay a premium to a universal life policy, that amount which exceeds the current cost of insurance is credited to the cash value of the policy. That cash value earns tax deferred interest according to the provisions of the policy. In addition to the current cost of insurance there are fees which are also withdrawn from the policy as stated in the policy. The insurance company generally offers a minimum interest rate set by the contract, but may change the rate credited from time to time.
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When you pay a premium to a universal life policy, that amount which exceeds the current cost of insurance is credited to the cash value of the policy. That cash value earns tax deferred interest according to the provisions of the policy. In addition to the current cost of insurance there are fees which are also withdrawn from the policy as stated in the policy. The insurance company generally offers a minimum interest rate set by the contract, but may change the rate credited from time to time.