Permanent life insurance is sold to provide guaranteed protection over long periods of time (usually one's lifetime). It is used to provide, not only a sum of money to the insured's beneficiaries at death, but the death benefit can also be used to provide a continuing income to dependents, making it possible to keep the family and home together.

People also use permanent life insurance as a means of accumulating money through cash values for their own use in later life. This accumulation is referred to as a Living Benefit.

Ultimate Life is a permanent, interest-sensitive whole life policy designed to take advantage of  economic conditions — a feature not available in traditional products — by crediting excess interest to the Accumulation Account in the policy.

The Accumulation Account measures the policyholder's value in the policy. It is determined by accumulating premiums paid (less mortality and expense charges) with interest, at a current market interest rate. The total premium charged to the policyholder is guaranteed and cannot be increased even if mortality worsens or interest rates decline.

Although the current interest rate will change from time to time to reflect market conditions, the guaranteed rate will never be less than 4.5%.

The Cash Value (Living Benefit) is the amount the policyholder will receive if the policy is surrendered. It is equal to the Accumulation Account less any applicable Surrender Charge and/or Policy Loan balances.

A Surrender Charge is imposed in order for UTUIA to recoup acquisition costs in the event of an early termination. This charge, which varies by issue age, is a percentage of the annual premium and grades to zero in the twentieth year.