UL stands for Universal Life, a form of life insurance that combines features of Term and Whole Life coverage. There is a guaranteed death benefit that can often be locked in for a set number of years (some policies allow the death benefit to be guaranteed to age 120+, ensuring that the policy will not lapse before death). The amount of premium going to the savings account portion of the Universal Life is invested and may generate some cash value in the policy.
Universal Life offers more flexibility than Whole Life in that the death benefit and premium can often be adjusted.
U.L. stands for universal life insurance. UL was created in the mid-eighties as an answer to buy term and invest the difference. There are four UL policies that have developed over the years: Current Assumption UL, Indexed UL, Variable UL and guaranteed UL. It is a flexible contract with two sets of rates: current company practice and contractual guaranteed rates.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
What does UL mean in life insurance? UL is short for Universal Life. UL is a product that was created to satisfy the buy term and invest the difference crowd. The plan involves a term premium cost and a accumulation account that a portion of the premium is deposited into.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A universal life insurance policy is a permanent form of life insurance that allows the owner of the policy the flexibility to direct the frequency of premiums and the amount of premiums. In this process the owner uses the premiums to pay current life insurance costs and future life insurance costs through cash value. Most insurance company maintains a separate fund for the cash value which may enjoy better results than the normal company funds. The owner assumes responsibility to provide sufficient cash value to maintain the death benefit until death.
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Universal Life offers more flexibility than Whole Life in that the death benefit and premium can often be adjusted.