Final answer:
Universal life insurance is a type of life insurance policy that is subject to a contract interest rate. It offers a death benefit and also accumulates a cash value based on the contract interest rate.
Step-by-step explanation:
A life insurance policy that is subject to a contract interest rate is referred to as universal life insurance. Universal life insurance is a type of permanent life insurance that offers a death benefit along with a cash value component, which accumulates interest based on a contract interest rate.
A life insurance policy subject to a contract interest rate is known as universal life insurance, which includes a death benefit and a cash value account influenced by an interest rate.
A life insurance policy that is subject to a contract interest rate is known as a universal life policy. Universal life insurance is a type of cash-value life insurance that offers both a death benefit and a cash account that grows based on a contract interest rate. The cash value can be used by the policyholder for various purposes, providing flexibility and a savings element. Like an adjustable-rate mortgage that changes with market interest rates, a universal life insurance policy can offer adjustable premiums and death benefits, with the interest rate influencing the policy's cash value. A life insurance policy that is subject to a contract interest rate is referred to as universal life insurance. Universal life insurance is a type of permanent life insurance that offers a death benefit along with a cash value component, which accumulates interest based on a contract interest rate.
A life insurance policy subject to a contract interest rate is known as universal life insurance, which includes a death benefit and a cash value account influenced by an interest rate.