Variable Universal Life insurance is a permanent life insurance that offers a built-in investment account. It provides a lifelong death benefit, allowing policyholders to invest their cash value into market-based sub-accounts, offering potential significant financial growth alongside adjustable premium payments.
Variable Universal Life insurance takes a portion of your premiums for insurance fees, the rest goes into sub-accounts just like mutual funds. The insured dictates how these funds are invested for example stocks, bonds, or fixed-rate options, solely based on the insured risk tolerance. While offering access to the cash value while you are alive to supplement retirement or fund other major expenses. The cash value grows on a tax-deferred basis.
Variable Universal Life insurance offers flexible premiums, the insured can adjust the timing and amount of the premium payments, and even skip payments as long as the accumulated cash value is sufficient to cover the policy’s ongoing fees.