Fund Value

Fund Value refers to the accumulated value of the investment component within a Universal Life Insurance policy. It represents the total market value of the funds held in the policy’s investment accounts, after deducting any applicable fees or charges. The fund value is separate from the guaranteed death benefit but can be paid out in part or in full depending on the policy structure and payout option selected.

In a Universal Life policy, the fund value grows over time based on the performance of the selected investment options, which may include equity, bond, or interest-bearing accounts. It is often used to cover the ongoing cost of insurance and administration fees.

Key Features of Fund Value

Important Considerations

• ‍‍If the fund value is insufficient to cover internal policy charges and no additional premium is paid, the policy could lapse.
• Fund value is not guaranteed and depends on the investment strategy selected by the policyholder.
• Upon death, depending on the payout option (e.g., Level or Increasing), the fund value may or may not be paid to the beneficiary.

Summary
Fund Value is a core feature of Universal Life Insurance, reflecting the accumulated value of the policy’s investments. It offers flexibility and tax-deferred growth but must be monitored regularly to ensure it remains adequate to support the policy over time. Unlike the guaranteed death benefit, the fund value fluctuates and is subject to investment risk.