Variable universal life policies provide permanent life insurance coverage and any cash value accumulates on a tax-deferred basis. The death benefit and cash value depend on the investment performance of one or more separate accounts, which may be invested in mutual funds or other investments allowed under the policy. Variable Universal Life policies provides insurance to protect what you have today and investment options to help you provide for what you want tomorrow.
Variable universal life (VUL) insurance, can be viewed as having two parts. The first part goes to pay for the cost of insurance. The second part is allocated to subaccounts that invest in some combination of stocks, bonds, and cash-equivalent vehicles selected by you, each having the potential to accumulate "cash value" on a tax-deferred basis. There may also be a fixed-interest account option in which to allocate funds.*
Over time, your need for life insurance may decline. At some point, you may decide to tap into the policy's cash value or borrow against it to supplement your retirement income - or use it in other ways.**
The reason to purchase life insurance is to provide a death benefit. Since life is for the living, why buy a policy that doesn't pay off until after you're gone? Variable universal life can help protect your family now and potentially improve your financial situation during your lifetime.
Rates and coverage vary form state to state. Shop around on your own and talk to an independent insurance agent to make sure you get a plan that's right for you. It's amazing how much rates may vary from company to company for the same coverage. For more information and rates on life insurance visit our sponsor site below.
* The investment return and principal value of variable subaccounts will fluctuate. Your cash value, and perhaps the death benefit, will be determined by the performance of the chosen subaccounts. Variable universal life insurance policies typically include mortality and expense risk charges, administrative fees, and fund expense charges.
** Withdrawals may be taxable and subject to surrender charges. Policy loans and withdrawals will reduce the policy's cash value and death benefit. Loans are subject to interest charges www.grouphealthplans.com
