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Insurance & Risk Management
10. Chapter 11: Life Insurance/Variations of whole life insurance
10. Chapter 11: Life Insurance Illustration
Syllabus Slides

Variations of whole life insurance

01.Core Concepts

In a universal life insurance, the protection and savings components are separated Most policies have a target premium, but the policyholder is not obligated to pay it A monthly mortality charge is deducted from the cash-value account for the cost of the insurance protection Insurers typically deduct 5% to 10% of each premium for expenses Interest earnings credited to the cash-value account depend on the interest rate ‹#›