Despite the high growth potential of
the variable sub accounts in a variable universal life insurance product, there are many tax benefits to a VUL over investment accounts.
The variable sub accounts are usually modeled after mutual funds, but may contain their own separate free structures.
Instead of paying a set rate of interest, the money is invested into
variable sub accounts.
Unlike IULs where your money is placed in indexed accounts that track an equity index, such as the S&P 500, variable life insurance is an investment in
variable sub accounts.
If you have previously submitted a Telephone / Web Authorization form, you will also have the ability to change your address, request a partial withdrawal, or request a one time
variable sub account transfer.
Some policies pay dividends, some pay interest, and some invest the cash value in
variable sub account funds.
Not exact matches
The key difference with
variable annuities (vs. other types) is that the
sub accounts offer the opportunity for a higher rate of return if asset values increase.
Variable Universal Life offers the benefits of Universal Life with an additional opportunity to grow your cash value through the allocation of premiums to professionally managed
sub accounts or a fixed
account.
There are many
sub -
account / mutual fund options to choose from inside most
variable annuities.
Variable Universal Life from Foresters Life Insurance and Annuity Company offers the benefits of Universal Life with an additional opportunity to grow your cash value through the allocation of premiums to professionally managed
sub accounts or a fixed
account.
In other words,
variable universal life (VUL) is a life insurance policy type in which the coverage amount can change due to the investment performance of the policies
sub accounts.
The difference between a
variable universal life insurance policy and a traditional universal life insurance policy is that a
variable universal life policy takes your cash value and invests it in numerous of
sub accounts that are quite similar to mutual funds.
The key difference with
variable annuities (vs. other types) is that the
sub accounts offer the opportunity for a higher rate of return if asset values increase.
A Universal life insurance policy can be invested in either a
variable or fixed interest
sub account.
Variable means that the cash value balances can fluctuate based upon the performance of those underlying
sub accounts.