Variable Universal Life Insurance
Variable Universal Life Insurance provides permanent protection to the beneficiary upon the death of the policy holder at the same time offers the very best investment options. This type of insurance is the most expensive because you can allocate a portion of your premium dollars to various instruments and investment funds within the insurance company’s investment portfolios. Because of investment risks, these policies are considered securities contracts and are regulated under the federal securities laws and are required to provide a prospectus.
Variable Universal Life Insurance allow you to participate in various types of investment options while not being taxed on your earnings until you surrender the policy. You can apply the interest earned toward the premiums and lower the amount of premiums you pay.
The down side of this type insurance is due to investment risks, when the invested funds perform poorly there will be less money available to pay the premiums and you may have to pay more than you can afford to keep the policy in force. Also poor fund performance can affect the cash and death benefit. This policy doesn’t allow you to withdraw from the accumulated cash value during your lifetime.
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