What is the benefit of a variable life policy as compared to a universal life policy?
When comparing universal vs. variable life insurance, the main differences are the death benefit and cash value. Universal variable life offers a flexible death benefit but slower cash value growth, while variable life has a guaranteed death benefit and a greater potential for cash value growth.
Which of the following is a benefit of purchasing variable life insurance?
The premiums paid to purchase a variable life insurance policy are tax deductible. (Variable life insurance policies provide a guaranteed minimum death benefit. However, the death benefit may be increased based on the performance of the subaccount products into which the owner directs the excess premiums.
Is variable universal life insurance good?
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.
What is one of the most attractive feature of a variable universal life policy?
The primary benefit of variable universal life insurance is flexibility. Many people choose this type of insurance because it lets them select how some of their money is invested on a tax-deferred basis and move their assets between investment funds according to their circumstances.
Why choose variable universal life insurance?
The ability to participate fully in the market and still receive the tax benefits of life insurance is one of the primary reasons variable universal life is used in private placement life insurance. Having no rate cap can be a huge advantage when comparing VUL vs IUL policies.
Is variable universal life (VUL) a good tax incentive?
For those that believe they have the skills to increase their cash value almost every year – the VUL is a fantastic tax incentivized option. But don’t expect any true guarantees. As with all forms of life insurance there are advantages and disadvantages to the Variable Universal Life policy.
What is a variable death benefit?
The variable death benefit is equal to the cash value at the time of death, plus the face value of the insurance. Unlike universal life insurance, this policy offers the freedom to invest in a preferred investment portfolio.