Early on in the process I suggested to the client that they get a current in force illustration
of their variable universal life policy.
There are general uses
of Variable Universal Life Insurance.
The growth
of the variable universal life policy's cash value is tax - deferred.
The feature
of Variable Universal Life Insurance (VUL) is a combination of Variable life and Universal life insurance.
Private placement life is a type
of variable universal life insurance that is customized for high net worth individuals.
Variable pay life insurance policies belong to the category
of variable universal life (VUL) insurance.
A fourth lesser known category, that is really a spin off
of variable universal life is called private placement life insurance.
Keep reading to learn all about not only the definition
of variable universal life insurance but how a variable universal life insurance policy works in practicality.
Let me give you a little history as to the evolution
of the variable universal life insurance policy, how it all started and why you may need to give it some thought
Flexibility is the key asset
of a variable universal life insurance policy.
The benefit
of variable universal life insurance over universal life insurance is that historically speaking, the stock market outperforms the guaranteed accounts of universal life.
The introduction
of variable universal life insurance into insurance companies has brought about a kind of comforting feeling into the minds of those who want to invest some money through a life insurance policy.
Now that you understand the basic features
of a variable universal life insurance policy, and how the insurance charges work, here is how people actually profit from a VUL.
The risk
of a variable universal life insurance policy is that the market will decline, and the owner will end up with a poorly performing policy.
A fundamental part
of every variable universal life insurance product is the cash value account.
The other piece
of your variable universal life insurance policy is a portion of the money you pay into the policy every month is saved or invested, meaning your policy will accrue cash value.
As with a regular universal life insurance plan, the policyholder
of a variable universal life insurance policy can make adjustments to the premium payments and / or the death benefit as needed in order to meet their ongoing changing needs.
The main features
of a variable universal life policy are a mix of those typically found in variable life and universal life policies:
Permanent life insurance: AXA offers whole life insurance, two types of universal life insurance and two types
of variable universal life insurance.
In one form
of variable universal life insurance, the cost of insurance purchased is based only on the difference between the death benefit and the cash value (defined as the net amount at risk from the perspective of the insurer).
A con
of variable universal life insurance is that the policy can get pretty costly and is not an ideal product for someone who is looking for pure death benefit protection.
Another use
of Variable Universal Life Insurance is among relatively wealthy persons who give money yearly to their children to put into VUL policies under the gift tax exemption.
With the introduction
of the variable universal life insurance, you have the option of being covered for all your life, and reap the benefits of a term life insurance.
One of the greatest advantages
of variable universal life insurance is the flexibility it allows.
Optional riders that customize a policy to fit individual needs usually carry an additional charge and are only available through the purchase
of variable universal life insurance products.
The cash value
of Variable Universal Life Insurance can be used as a tax - advantaged income source for retirement and estate planning as well as for children's education.
In addition, there are three other variable products, called the ISP Choice Variable Life, ISP 10 Express, and the Single Premium Variable Life, all which offer variations
of the Variable Universal Life line to accumulate value tied to a market, while remaining inside of a life insurance contract.
Talk to your Farmers Insurance and Financial Services agent about the features and benefits
of Variable Universal Life insurance.
For more specific information on one
of our Variable Universal Life products, select the link below to view the product and fund prospectuses, fact sheets, brochures and performance summaries:
New York Life Insurance and Annuity Corporation (NYLIAC), which is an issuer
of variable universal life policies, offers in its Variable Universal Life policies a New York Life - affiliated family of investment divisions called the Mainstay funds, but NYLIAC's Variable Universal Life policies also offer investment divisions managed by some of the more popular brands in the mutual fund industry, including Fidelity, BlackRock, PIMCO, and American Funds.
Optional riders that customize a policy to fit individual needs usually carry an additional charge and are only available through the purchase
of a variable universal life insurance product.
For those who want the protection of a life insurance policy and don't mind paying extra for the added benefit of potentially being able to earn cash - value growth on their premium dollars, the dual nature
of a variable universal life (VUL) insurance policy may be a good choice.
Here, we're looking at the basics
of a variable universal life (VUL) insurance policy that includes what it is, how it works, and a few of the pros and cons.
Other benefits
of variable universal life insurance include those you'd find with other types of permanent life insurance.
The advantage
of variable universal life insurance is to capitalize on the saving portion of your plan.
In the years between the founding and 1962, the company grew rapidly as they expanded and acquired other insurance companies with Jack Kenney spearheading the group and leading them to become one of the nation's top providers
of variable universal life insurances and annuities.
Before investing, carefully consider your need for life insurance coverage and the charges and expenses
of the variable universal life insurance policy.
It's a type of permanent life insurance and the performance
of your variable universal life policy will depend on the performance of the mutual funds you are managing.
New York Life Insurance and Annuity Corporation (NYLIAC), which is an issuer
of variable universal life policies, offers in its Variable Universal Life policies a New York Life - affiliated family of investment divisions called the Mainstay funds, but NYLIAC's Variable Universal Life policies also offer investment divisions managed by some of the more popular brands in the mutual fund industry, including Fidelity, BlackRock, PIMCO, and American Funds.
Optional riders that customize a policy to fit individual needs usually carry an additional charge and are only available through the purchase
of variable universal life insurance products.
The cash value
of a variable universal life insurance policy is not guaranteed.
In the case
of variable universal life or indexed universal life policies, the illustration needed will be based on a hypothetical earnings rate such as 6 % and current insurance costs.
For more specific information on one
of our Variable Universal Life products, select the link below to view the product and fund prospectuses, fact sheets, brochures and performance summaries:
Whole life insurance policies don't offer the flexible premiums
of variable universal life insurance policies.
The main pros and cons
of variable universal life are that since you have the benefit of potential unlimited gains, you also bear the risk of potential unlimited loss.
The following is just a quick list of the popular pros and cons
of the variable universal life insurance policy.
A fourth lesser known category, that is really a spin off
of variable universal life is called private placement life insurance.
I have been skeptical
of variable universal life insurance policies (VULs) since they became popular enough to show up on my radar screen in the late 1980s.
Not exact matches
«If you have ample funds and are looking to get rid
of a little every month, it would not be irrational to buy a whole -
life,
universal -
life or
variable -
life policy, where the cash value grows income tax - free as long as the policy is held until death,» Hunt said.
Types
of cash - value policies include whole
life,
universal life and
variable life.