Universal insurance generally refers either to universal life insurance (a permanent life insurance policy combining a death benefit with an investment savings component) or universal health/social insurance systems. In the context of universal life insurance, a portion of your premium payment covers the cost of insurance and administrative fees, while the remainder is deposited into a cash value account. This cash value earns interest based on market rates or indexed accounts, allowing policyholders to use accumulated cash value to pay premiums or borrow against the policy during their lifetime.
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