Variable Universal Life Insurance

Variable universal life insurance can offer many different options for the policyholder, while offering the added benefit of investing money during the term of the policy. It is important to understand this coverage before buying a policy, not only to make the most of the benefits, but also to understand what it will cost and what the policy will cover. Those who are unsure of whether or not variable universal life insurance is the right choice should talk with an insurance agent to get the facts about all the policies that are available.

There are several options of universal life insurance available for the policyholder, which can make it attractive to a variety of people. The policyholder can vary the amount of premium they pay by using part of earnings they have accumulated to cover part of the premium cost. Of course, this only can happen when the policyholder has accumulated enough to do this. Secondly, there is the option to vary the amount of death benefits that the beneficiaries are eligible for during the term of the policy. With both of these options, however, there are higher administration costs than there are for a straight forward universal life insurance policy.

There are benefits to purchasing this type of policy. First, is the benefit of being able to accumulate money in a tax-deferred savings account. People sometimes look at purchasing a universal life insurance policy as a combination of both coverage and investment for their future. Second, is the benefit to variable universal life insurance policies of not having to pay the premium during the entire term of the policy. When the payments accumulate in the savings account to a certain amount, the policyholder no longer needs to make premium payments to keep the policy in force.

"The LORD is my light and my salvation; whom shall I fear? the LORD is the strength of my life; of whom shall I be afraid?" (Psalm 27:1). Faith along with a smart decision about coverage can be helpful in preparing for the unexpected. These policies usually are marketed to those who are looking to combine investments with their insurance. Furthermore, universal life insurance also is best for those who intend to keep their policy long-term, since it takes about 15 years for the policyholder to be eligible for any return on the variable universal life policy. In the past, policies were not necessarily recommended for people, unless they planned to live into their 70s. But in this day where people are living into their 70s and even their 80s, variable universal life insurance has become a very viable coverage and investment option.

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