UNIVERSAL LIFE INSURANCE: :
insurance that offers a flexible premium and adjustable benefit. These policiesare “transparent,” in that the policyholder must be shown the premiums, death benefits, interest credits, mortalitycharges, expenses and cash values separately each year. Cash values and insurance are unbundled (decoupled), e.g.,shown separately. Death benefits are offered as Option A and Option B. Option A has a level death benefit,consisting of an increasing cash value plus decreasing insurance, as in whole life. Option A has a “risk corridor,” anamount of insurance that must be maintained to qualify as life insurance. Option B has an increasing death benefitconsisting of level insurance plus increasing cash value.