Life · Chapter 4 · Universal & Variable
Universal Life (UL)
Definition
Flexible premiums + adjustable death benefit + unbundled (itemized costs) + interest-sensitive cash value. Buys YRT term inside; only the first premium is required.
Exam tip
Whole life = bundled; UL = unbundled. UL can lapse if cash value can't cover the cost of insurance.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms