Host: What are Universal Life Policies?
Bob Ley: Universal Life is a type of permanent insurance policy under which, one, the premiums are flexible, two, the death benefit protection can be adjusted, and three, insurance company expenses and other charges are disclosed. Annually the policy owner will receive a report on the charges, expenses paid, accumulation value balance and interest credited. The interest credit is typically competitive. The insurance protection is combined with a cash value account. The return is not guaranteed, though some policies do provide a minimum interest guarantee.