« Back to Glossary Index
An unbundled whole life insurance product in which the mortality, investment, and expense factors used to calculate premium rates and cash values are expressed separately in the policy. In a universal life insurance policy, any applicable expense charges are deducted from the premium and the remainder of the premium is then credited to the policy’s cash value. Each month the insurer deducts the mortality and any other costs from the cash value and credits the remainder of the cash value with interest.
« Back to Glossary Index