LYCOS RETRIEVER 
Variable Universal Life Insurance: Policies
built 190 days ago
Variable Universal Life Insurance is a unique blending of permanent life insurance and investment flexibility. This type of policy provides lifetime insurance protection, as well as an opportunity to invest in tomorrow. Simply put variable universal policies are divided into two parts. The first part pays for the cost of your policy. The second part is distributed among sub accounts that are invested in cash equivalent vehicles of your choice. Popular portfolios include stock, bond, balanced, international and money-market accounts.
Source:
Variable universal life insurance combines the features of both variable and universal life insurance policies. The variable life feature allows the policyowner to place a portion of premiums in investment options that have the potential for greater earnings than are available from the guaranteed rates provided by the traditional whole life insurance products. The policyowner assumes all investment risk with this product. The universal life feature provides the opportunity for the policyowner to adjust both the premium payments and the death benefit in various ways as permitted by the insurance policy. The death benefit guarantee is based on the claims-paying ability of the insurance company and does not extend to the separate account.
Source:
[One] use of Variable Universal Life Insurance is among relatively wealthy persons who give money yearly to their children to put into VUL policies under the gift tax exemption. Very often persons in the United States with a net worth high enough that they will encounter the estate tax give money away to their children to protect that money being taxed. Often this is done within a VUL policy because this allows a tax deferral (for which no alternative would exist besides tuition money saved in an educational IRA or 529 plan), provides for permanent life insurance, and can usually be accessed by borrowing against the policy.
Source:
Variable Universal Life (VUL) is similar in most ways to Universal Life, including premium flexibility. If you are presently investing in mutual funds, or have the desire to, you may want to consider a VUL policy. The term "variable" denotes the ability to make investments in separate accounts. A consumer purchasing VUL has the flexibility to allocate their cash values between 10 to 15 separate accounts. A conservative investor could select money market accounts, bond funds, etc. A moderate investor might be interested in balanced accounts, blue chip stock funds, etc., while an aggressive investor may be interested in growth stocks, emerging world markets, etc.
Source:
Policyowners of Farm Bureau's Variable Annuity, Variable Universal Life insurance [A]nd Last Survivor Variable Universal Life insurance products may not have money in more than 16 investment options, including the Declared Interest Option, at any one time. Therefore, if a client chooses to reallocate money to different investment options, the new allocation will not take effect until the appropriate transfer of money has been completed.
Source:
Variable universal life insurance policies are issued by Protective Life Insurance Company (PLICO). Securities are offered by Investment Distributors, Inc. (IDI). Both are subsidiaries of Protective Life Corporation and are located at 2801 Highway 280 South, Birmingham, Alabama 35223. Protective Life Corporation is a separate company and is not responsible for the financial condition or contractual obligations of PLICO.
Source:
MORE ABOUT
Policies