As defined in the Regulation on provision of universal life insurance policies issued together with the Ministry of Finance Decision No. 96/2007/QD-BTC of November 23, universal life insurance means a kind of life insurance product provided through the operation of combined insurance and investment and characterized by the separation between risk insurance and investment proportions in insurance premiums and benefits. Insurance purchasers may flexibly negotiate insurance premiums and insurance sums in insurance policies and enjoy all investment yields from the universal fund of insurance agencies at a rate not lower than the minimum investment ratio committed by insurance agencies in insurance policies. Insurance agencies enjoy charges paid by insurance purchasers as agreed in insurance policies.
Insurance agencies providing universal life insurance must have a margin of payment capacity at least VND 100 billion (USD 62.5 million) greater than the minimum requirements.
Insurance agencies and insurance purchasers may agree on the benefit of risk insurance but must ensure that the minimum insurance sum is not smaller than five times the insurance premium paid in the first year, for insurance policies with periodical premium payments, or 125% of the lump-sum insurance premium.-