Universal life insurance is characterized by great flexibility. Policyholders can determine the amount and frequency of premium payments (i.e. the more you pay, the less time you will need to pay). Your premiums cover the insurance part also the savings or investment element and the expense part. The stated interest on the investment portion changes along with movement in interest rates; moves in 1/4 % interest steps are typical as banks and other financial institutions make similar moves.
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