Universal Life: A Brief Summary

This article explains that for people who had purchased life insurance in the 1980s, the low interest rates have led to an increase in premiums. The article is based off of a man, Nicholas Vertullo purchased “a $238,000 life-insurance policy, and later bought three more policies, pushing the death benefit to about $500,000” (Scism). He was stunned by the $30,000 increase in the annual cost. Nicholas Vertullo’s insurance combines with tax-deferred savings including the death benefit. The insurance that Vertullo has, Universal Life, works when the buyer deposits money into it’s policy, then expenses are deducted, including the death benefit, and whatever is left stays in the policy continuously earning interest for future costs. The cost of the