Flexible Premium Variable Life (Universal)

Flexible premium variable life (VUL) insurance is a type of life insurance that allows policyholders to adjust their premium payments and investment choices. This flexibility can make it a good option for policyholders who need or want more control over their life insurance coverage.

Features of flexible premium variable life insurance

Flexible premiums: Policyholders can choose to increase or decrease their premium payments within certain limits. This can be helpful for policyholders who have fluctuating income or who need to make changes to their budget.
Investment choices: Policyholders can choose how to invest their cash value. This can be done by selecting from a variety of investment options, such as mutual funds and stocks.
Death benefit: The death benefit is paid to the policyholder’s beneficiaries when the policyholder dies. The death benefit is typically tax-free to the beneficiaries.
Cash value: The cash value is the amount of money that the policyholder can access while they are still alive. The cash value can be used for any purpose, such as retirement income or to pay for unexpected expenses.

Benefits of flexible premium variable life insurance

Flexibility: Policyholders have the flexibility to adjust their premium payments and investment choices as their needs change.
Growth potential: The cash value can grow over time, depending on the investment choices that the policyholder makes.
Tax benefits: The death benefit is typically tax-free to the beneficiaries. The policyholder may also be able to withdraw money from the cash value tax-free, up to the amount of their basis.

Drawbacks of flexible premium variable life insurance

Risk: The cash value is subject to market risk, which means that it can lose value.
Fees: Policyholders may have to pay fees for their life insurance policy, such as administrative fees and investment fees.
Complexity: Flexible premium variable life insurance policies can be complex and difficult to understand.

Is flexible premium variable life insurance right for you?

Whether or not flexible premium variable life insurance is right for you depends on your individual needs and circumstances. If you are looking for a life insurance policy that offers flexibility and growth potential, then flexible premium variable life insurance may be a good option for you. However, it is important to understand the risks and fees associated with this type of policy before you purchase it.

If you are considering purchasing flexible premium variable life insurance, it is important to speak with a qualified financial advisor to discuss your needs and options.

Features of flexible premium variable life insurance

Flexible premiums: Policyholders can choose to increase or decrease their premium payments within certain limits. This can be helpful for policyholders who have fluctuating income or who need to make changes to their budget.
Investment choices: Policyholders can choose how to invest their cash value. This can be done by selecting from a variety of investment options, such as mutual funds and stocks.
Death benefit: The death benefit is paid to the policyholder’s beneficiaries when the policyholder dies. The death benefit is typically tax-free to the beneficiaries.
Cash value: The cash value is the amount of money that the policyholder can access while they are still alive. The cash value can be used for any purpose, such as retirement income or to pay for unexpected expenses.

Benefits of flexible premium variable life insurance

Flexibility: Policyholders have the flexibility to adjust their premium payments and investment choices as their needs change.
Growth potential: The cash value can grow over time, depending on the investment choices that the policyholder makes.
Tax benefits: The death benefit is typically tax-free to the beneficiaries. The policyholder may also be able to withdraw money from the cash value tax-free, up to the amount of their basis.

Drawbacks of flexible premium variable life insurance

Risk: The cash value is subject to market risk, which means that it can lose value.
Fees: Policyholders may have to pay fees for their life insurance policy, such as administrative fees and investment fees.
Complexity: Flexible premium variable life insurance policies can be complex and difficult to understand.

Is flexible premium variable life insurance right for you?

If you are considering purchasing flexible premium variable life insurance, it is important to speak with a qualified financial advisor to discuss your needs and options.