Universal Life Insurance.

Your universal life plan would offer you a variation of the standard whole life plan. There will be an insurance part of your policy that is separate from an investment portion. The investment portion of your universal life plan will be invested in money market accounts and your policy’s cash value portion will be set up into an accumulation fund. Unlike whole life, the cash value of your universal life plan will grow at a variable rate. Ordinarily, there will be a minimum guaranteed interest rate applied to the policy. It won’t matter if your insurance company’s investments go badly, you’ll be guaranteed a minimum return on your plan. If, on the other hand, your insurance company makes good investments, you’ll benefit from an increased return on your plan’s cash value portion.