Variable Universal Life Insurance
Variable universal life insurance
policies provide permanent life insurance coverage and any cash
value accumulates on a tax-deferred basis. The death benefit
and cash value depend on the investment performance of one or
more separate accounts, which may be invested in mutual funds
or other investments allowed under the policy. Variable Universal
Life insurance policies provides insurance to protect what you have today
and investment options to help you provide for what you want
tomorrow.
Variable universal life (VUL) insurance,
can be viewed as having two parts. The first part goes to pay
for the cost of insurance. The second part is allocated to subaccounts
that invest in some combination of stocks, bonds, and cash-equivalent
vehicles selected by you, each having the potential to accumulate "cash
value" on a tax-deferred basis. There may also be a fixed-interest
account option in which to allocate funds.*
Over time, your need for life insurance may decline. At some point, you may decide to tap into the policy's
cash value or borrow against it to supplement your retirement
income - or use it in other ways.**
The reason to purchase life insurance is to provide a death benefit. Since life is for the living,
why buy a policy that doesn't pay off until after you're gone?
Variable universal life insurance can help protect your family now and
potentially improve your financial situation during your lifetime.
Rates and coverage vary form state
to state. Shop around on your own and talk to an independent
insurance agent to make sure you get a plan that's right for
you. It's amazing how much rates may vary from company to company
for the same coverage.
* The investment return and principal
value of variable subaccounts will fluctuate. Your cash value,
and perhaps the death benefit, will be determined by the performance
of the chosen subaccounts. Variable universal life insurance
policies typically include mortality and expense risk charges,
administrative fees, and fund expense charges.
** Withdrawals may be taxable and
subject to surrender charges. Policy loans and withdrawals will
reduce the policy's cash value and death benefit. Loans are subject
to interest charges.
For more information
or a quote on universal life insurance free
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