Sentences with phrase «underlying cash value option»

There are several types of life insurance that offer an underlying cash value option.

There are several types of life insurance that offer an underlying cash value option.

Not exact matches

Unlike a purchase of common stock for cash, the purchase of an option involves «leverage,» whereby the value of the option contract generally will fluctuate by a greater percentage than the value of the underlying interest.

By contrast, the cash value in universal life insurance is linked to an interest rate determined by the insurer, and the cash value of variable life and variable universal life is linked the performance of the underlying investment options you choose to invest in and fluctuate with market conditions.

The difference between this average value and the strike price is paid out to the holder of the option in cash, which is rather unique since it doesn't involve a transaction of the underlying security.

Variable universal life insurance can also provide the opportunity to build up cash value based on the performance of underlying market investment options such as mutual funds.

Variable Universal Life is that Variable Universal Life allows you to accumulate policy cash value through an investment feature called an underlying investment option.

All put options a fund writes will be covered, which means that a fund will earmark or segregate cash, U.S. government securities or other liquid securities with a value at least equal to the exercise price of the put option, or will otherwise «cover» its position as required by the Investment Company Act of 1940, as amended (the 1940 Act)(e.g., the fund will hold a put option on the same underlying security with the same or higher strike price).

All put options the fund writes will be covered, which means that the fund will earmark or segregate cash, U.S. government securities or other liquid securities with a value at least equal to the exercise price of the put option, or will otherwise «cover» its position as required by the Investment Company Act of 1940, as amended (the 1940 Act)(e.g., the fund will hold a put option on the same underlying security with the same or higher strike price).

By contrast, the cash value in universal life insurance is linked to an interest rate determined by the insurer, and the cash value of variable life and variable universal life is linked the performance of the underlying investment options you choose to invest in and fluctuate with market conditions.

Variable Life insurance is offered via a prospectus and provides death benefits and cash values that vary with the performance of a portfolio of underlying investment options.

Through the investment options you select, a VUL policy has the potential for tax - deferred cash value accumulation, however, any assets allocated to the underlying funds are subject to the market risk and will fluctuate in value.

There are also more underlying options that are available in terms of allowing a universal policy holder's cash value to grow.

VUL Protector — With the VUL Protector plan, the insured is protected with death benefits coverage, along with the potential to grow cash value via its underlying investment options.

This permanent life insurance plans balance insurance coverage along with the opportunity to build cash value via underlying investment options.