A type of life insurance that pays a death benefit and also accumulates a cash value, thus acting as an investment. Some policies offer flexible premium payment plans, in which the amount and timing of the premium can vary based on the insured’s needs.
universal life insurance
Universal life insurance is a type of life insurance that includes a term life insurance policy plus a tax-deferred savings plan and a death benefit.
A term life insurance policy with a tax-advantaged savings plan and a death benefit is an example of universal life insurance.