What are the two most common adjustments made during a month with a universal life insurance policy?

1. Cost of Insurance

2. Cash Value

Explanation:

Universal life insurance premiums consist of two components:

1. Cost of Insurance (COI) amount

2. A saving component which is known as the cash value

In a universal life insurance policy, the two most common adjustments made during a month that each month, the cost of the death protection is deducted from the cash value, and the current interest rate is credited. In other words we explain as the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest. The policy is debited each month by a cost of insurance (COI) charge as well as any other policy charges and fees drawn from the cash value, even if no premium payment is made that month