Is variable universal life insurance a good idea?
VUL isn't a good investment for most people. It comes with fees and complexity at a high price that isn't worth the investment returns. Most people will save more by using a traditional investment account and buying term life insurance. A VUL policy has high investment risk and high premiums.
Who is variable life insurance best for?
Variable life insurance is best for those looking for flexible policies as well as an investment option. It's best for those who can afford to pay potentially higher premiums as well as tolerate volatility in the market. A variable life insurance policy is both life insurance and an investment.
What are the benefits of variable universal life?
With features that include cash value, investment variety, flexible premiums and a flexible death benefit. Like most permanent policies, variable universal life insurance (VUL) offers life-long protection — it's designed to stay in place as long as you live and, sufficient premiums are paid.
What are the pros to variable life insurance?
The biggest advantage of variable life insurance is that it allows policyholders to choose from a variety of ways to invest the cash value of their insurance policies – similar to a mutual fund, variable life insurance policy cash value can be invested in stocks or bonds, with a variety of options depending on the ...