Non-Existent or
Small Cash Value Growth: The typical guaranteed universal life insurance policy does not build cash value, at least not to a level worth getting excited about.
A GUL policy is an attractive option for anyone who wants the following: (1) an easy to understand policy, that (2) provides lifetime coverage, that (3) focuses primarily on the death benefit, with (4) non-existent or
small cash value growth.
Not exact matches
There are well over a thousand mutual funds to choose from and they represent a full range of industries and companies, from
value or
growth stocks,
small cap or large cap companies, to domestic or emerging markets, to bonds and various
cash equivalents.
When the difference between the weighted average
growth rate of free
cash flow and the discount rate is
small, the terminal
value gets really big relative to the
value of the
cash lows prior to the terminal
value.
While a whole life policy's
cash value is typically guaranteed to grow a certain amount, it's
smaller than the potential
growth of a variable life insurance policy.
While a
small cash value may accumulate in these policies,
cash value growth is not an objective of this insurance.
If the policy only has a
small cash value, even high market returns will not create a lot of total dollar
growth in the policy.