A life insurance premium is paid each month. The insurer then subtracts a mortality and expense charge from the policy's cash value. This best describes which of the following life insurance policiesa. Economicb. Limited payc. Single premiumd. Interest sensitive

Universal life insurance policy

Explanation:

A universal life insurance policy is designed to guarantee a certain amount of money if the insured dies. All the premiums paid are placed in the policy's cash value account minus mortality charges and other expenses. The cash value account is invested so that the insured can earn interests on a tax deferred basis.