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Universal life insurance

Universal life insurance is a highly modified form of whole life insurance. Part of the premium buys insurance coverage that will be paid if the insured dies. The rest of the premium is invested in high-yield securities that are intended to increase the policy’s cash value more rapidly than that of a traditional whole life policy.

Universal life insurance is a flexible-premium whole life policy that provides lifetime protection under a contract that separates the protection and saving components. The contract is an interest-sensitive product that unbundles the protection, saving, and expense components.

Life insurance that combines term insurance with a tax-deferred savings account earning interest at bond market rates.

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