What Is Variable Universal Life Insurance?

variable life insuranceLike universal life insurance Variable Universal Life Insurance also builds cash value, and your money can be invested in a wide variety of investment vehicles. Snyder Insurance agents here in Chicago can help you find the best options available to fit your needs.

The choice of accounts is entirely up to the policy holder. The “variable” in the name refers to your ability to invest in separate accounts, in which values vary, including stock and bond markets. Another key advantage of VUL over whole life insurance is that there is no endowment age.

Under whole life, the age at which the cash value equals the death benefit amount, typically age 100, does not apply.

 

Advantages & Disadvantages Of Variable Life Insurance

You can take advantage of increases in market growth by having a variable universal life insurance policy, because the policy value has been invested into sub accounts that are exposed to positive changes in the market. Furthermore, your policy is flexible and can adjust as your needs change.

Keeping this all in mind, a variable universal life insurance policy in Chicago carries higher risk and responsibility. You will assume all investment risk when deciding this route. You will also need to hand select your own investment options and monitor them. If you have any questions about the risks involved, please contact a Snyder Insurance agent today.

What If My Insurance Needs Change?

You should always understand that as your life changes, so will your insurance needs. It is important to talk to your Snyder Insurance adviser to make sure this type of strategy works with your long term investment needs. One important rule to follow is to make sure that you are continually making payments to your premium, so that your policy doesn’t lapse if the market goes down.

Another note: If you decide to surrender your policy – or take a loan against it, or opt for a withdrawal – your death benefit may be greatly reduced, and your policy has a chance of lapsing. You may also face tax issues.

Lastly, there are extra fees and expenses for variable universal life insurance. The fees vary depending on the gender of the person as well as overall heath and age.