Universal Life Insurance
Permanent coverage with flexible premiums and an adjustable death benefit.
What is Universal Life Insurance?
Cash value earns a rate declared by the insurer, with a guaranteed minimum. The owner can change premiums and the death benefit within limits. Not a security. Variable universal life invests cash value in subaccounts and is a security.
Universal Life Insurance: a worked example
An owner skips premiums for a year, with the policy's cost of insurance paid from cash value.
More terms in Equities, Funds & Alternatives
Shareholder Rights (Statutory vs. Cumulative Voting)
Voting, preemptive rights, dividends when declared, inspection, limited liability.
Types of Preferred Stock
Cumulative, convertible, callable, participating, and floating-rate preferred.
American Depositary Receipt (ADR)
A dollar-denominated receipt for foreign shares, traded in the US.
Rights vs. Warrants
Rights: short-term, below market. Warrants: long-term, above market.
Restricted & Control Stock (Rule 144)
Unregistered or insider-held stock with resale limits.
Employee Stock Options (ISO vs. NSO)
Incentive options get capital gains treatment; nonqualified options create income at exercise.
Technical Analysis
Forecasting prices from charts, trends, and trading volume.
Fundamental Analysis
Valuing a company from its financial statements, management, and industry.