The birth of Universal Life Insurance happened in the early 1980s and has been accepted as part of the life insurance market.  A 4% guaranteed minimum interest rate is applied to the policy and entitles the owner to that quantum, no matter how the underlying investments in the policy perform. The insurance company will be able to guarantee a certain minimum amount of return on the money invested. If and when the insurance company performs well in terms of its investments, then the return of interest on the accumulated cash value will increase as well.

Universal Life Insurance also provides the owner the flexibility to provide income replacement for the owner’s spouse and dependent children. Investments in such insurance can also be used to pay off both personal and business debts. (for example: business loans, home mortgage etc.) In the event that any key employee passes away, this insurance can alternatively be used as a key person insurance to protect the company from economic loss as it relates to the unfortunate event affecting the key person.