© Protective Life Corporation, Birmingham, AL. Insurance companies should provide several investment strategy options for the cash accumulation component of the policy. You better have an insurance need. It won’t build a huge cash value. For those who want a policy that they can pay for without supervision, a term life option may be better. A universal life insurance policy is typically up to 4 times the cost of a term life insurance policy. Variable universal life insurance requires constant monitoring. These function like mutual funds and allow policyholders to have exposure to bonds or stocks. Pros and Cons Unlike other types of universal life insurance, variable universal life insurance allows policyholders to put in their policies’ cash value in diverse accounts, such as stocks, bonds and commodities, as with mutual funds. Mortality payments may change over time. VUL policies are very flexible. Because of its cash value potential, a VUL can be a way for you to complement your retirement nest egg, while at the same time, have the life insurance coverage you need. PROS of Universal Life Insurance ... An all-inclusive life arrangement gathers money esteem from a few of your top-notch installments and the variable loan fee at which the approach develops. Consumers are allowed to change their policy as their life circumstances change, yet still be able to build wealth and provide financial protections for their family. That interest doesn’t go into your policy. VUL policies are much higher than other forms of life insurance. You must keep an eye on your overall cash value to ensure it continues to build. An insurance agent, who happens to be your friend or relative, is selling a VUL plan to you. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries. Investors should carefully consider the investment objectives, risks, charges and expenses of the applicable variable universal life insurance policy and its underlying investment options before investing. For households with lower incomes, it may not be the correct insurance product to use. These variable universal life insurance pros and cons indicate that this type of policy can be beneficial to a certain segment of consumers. Like whole life and universal life (UL) insurance, VUL is a permanent* life insurance … While you may experience better than average cash-value growth with a VUL, you could also experience a decrease in your cash-value due to poor performance of your investment options. We here at I&E hope that this list will help provide just a little insight into this unique insurance and investment product. CONS of Universal Life Insurance … What Is Universal Life Insurance? ; In the second section, we get into the different indexed universal life insurance pros and cons, starting with the benefits. It provides a needed death benefit and offers a cash accumulation feature that can keep the policy active if the premium payments cannot be made. One of the positive features of a universal life insurance policy is that it builds a cash value that can be borrowed against. You are given strategy options for growth. Pros of variable life insurance. Below, we take a closer look at this type of policy to help you decide if it is a good choice for … 6. Variable universal life insurance offers some of the most flexible options in the life insurance world. VUL is a form of universal life insurance (UL) in which the contract’s earnings rate is based on the performance of the selected subaccounts.Variable subaccounts invest in insurance dedicated funds One challenge of universal life insurance … 1. Take your time when evaluating this and other insurance products to ensure you get the right coverage to meet the needs of you and your family. Unlike universal life insurance, variable life insurance policies are set up with a fixed premium payment schedule – payments are guaranteed never to increase and are always due at the same … The information presented is for educational purposes and is meant to supplement other information specific to your situation. All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. Variable universal life insurance, or VUL, is a cash-value life insurance policy. Variable life insurance policies are permanent life insurance plans. Universal life insurancecoverage is a type of flexible permanent life insurancepolicy that has several pros and cons. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. Your cash account can pay your premium. It is not the type of product that you can just file your statements away when you receive them. A VUL policy is usually structured so that it includes sub-accounts. Your … If you’re looking for a universal life policy that is guaranteed, a standard policy will typically be 20% less than a VUL policy. Let’s say that your policy is $60 per month. This article is separated into three sections. Fees that are associated with a VUL may be higher than with a universal life insurance policy. It offers a unique set of features that include investments and a death benefit. 2. Protective and Protective Life refers to Protective Life Insurance Company (PLICO) located in Brentwood, TN and its affiliates, including Protective Life & Annuity Insurance Company (PLAIC) located in Birmingham, AL. You have access to cash while still living and flexible premiums and benefits. But you aren’t sure if getting this type of life insurance is a wise investment decision. If you choose wisely and the fates allow, you’ll reap the rewards of sound investments. **Unpaid loans and partial withdrawals reduce cash value and death benefit. How variable universal life insurance works. These variable universal life insurance pros and cons indicate that this type of policy can be beneficial to a certain segment of consumers. For information about Protective Life and its products and services, visit www.protective.com. If you’re considering buying a universal life insurance policy, here are the rules you need to follow: Rules for universal life insurance: 1. 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