Variable universal life insurance is one of the types of the permanent life insurance the protects the insured for the entire life.

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Contrary to the term life insurance, the variable universal life insurance covers the insured for the entire life and hence falls under the category of the permanent life insurance. Permanent life insurance policies are expensive than the term life insurance policies as it offers additional saving feature which is known as the cash value. In permanent life insurance policy, the insured does not have to worry about the expiration of the policy, the beneficiary gets paid when the insured dies as long as the premiums are being paid timely.

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The difference between the cash value of a whole life policy and a variable universal life policy is that cash value of variable universal life policy is invested in the mutual funds or variable market and hence does not offer guaranteed return. Based on market’s performance, your cash value through variable universal life insurance can grow at a higher rate however it can cash value can also decrease if the market goes down.

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Upon premium payment, a portion of the premium goes to the cash value which is then invested in the market and the policy owner participate in the ups and the downs of market. The premiums may rise if the market performs badly as it impacts the cash value. All the gains through the variable universal life insurance is tax deferred. Hence some people also treat this policy as the IRA.

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Variable life insurance policy comes with the following benefit

• Protection for entire life

• Generates cash value

• Higher rate of returns

• Tax free payout to beneficiary

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Please call us to find out more details on any of the products or book your free Financial Needs Analysis session with one of our experienced agents who will help you understand your needs and will also help you to choose the type of insurance and the benefit amount that is right for you.