What Two Adjustments Are Usually Made To The Cash Value Account In A Universal Life Policy?
1. Cost of the term Insurance protection is charged and current interest earned is credited
2 current interset and insurance premiums are credited.
3 guaranteed interst is earned and premiums are credited
4 excess interest and premium are charged
first and third option
First, term does not have interest, it may be a rider, but it is the base policy that has the interest. Second, it depends on how the interest is credited, depending on the type of UL, index v. traditional. Some policies credit after the period goes by. If the credited interest is lower than the guarantee rate, then the guar. is credited. Hope this helps.
the premiums are deposited into the policy’s value. then, each month the cost of insurance and any expense fees/charges are deducted from the surrender value of the policy. at the same time, the value in the policy earns at a certain percentage rate. on fixed life products, they usually offer a guaranteed rate and a current interest rate.