Universal life has an explicit term insurance component and an explicit savings component.

Question

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Universal life insurance policies provide both a death benefit (term insurance component) and a cash value component (savings component). The cash value can be invested in a variety of options, and may accumulate over time to provide additional benefits to the policy holder such as the ability to borrow against the policy or to use the cash value to pay premiums.

Universal Life Has an Explicit Term Insurance Component and an Explicit