Universal Variable Life Insurance

Policy combining features Of UNIVERSAL LIFE INSURANCE and VARIABLE LIFE INSURANCE in that excess interest credited to the cash value account depends on investment results of separate accounts (equities, bonds, real estate, etc.). The policy owner selects the accounts into which the premium payments are to be made. However, since this is an equity product, filing with the securities and exchange commission (sec), an annual prospectus, an audit of separate accounts, and agent registration with the national association of SECURITIES dealers (NASD) are required. This policy can be considered a replacement for universal life insurance when interest rates of U.S. Treasury issues and other money market instruments are low. Contrast with universal life insurance.