Universal Variable Life

Universal Variable Life Insurance
Universal Variable Life Insurance was created with the goal of providing protection at the time of death of the insured. This policy is accompanied by savings, which reflect investments made in capital markets with a separate set of assets.
The policy-holder specifies where to invest account funds, based on his/her risk profile.
Universal Variable life Insurance policies provide two options:
  • Incremental: Benefits in case of death increase as the account value grows. Beneficiaries will receive the basic insured amount plus the accumulated account value.
  • Capped: Benefits in case of death remains constant throughout the life of the policy.

When benefits in case of death come from incremental policies, they are directly related to an investment. On the other hand in the case of a capped policy, benefits are always the same. The account value always varies based on the performance of assets in capital markets. Thus, savings are subject to return on investment.