VARIABLE UNIVERSAL LIFE INSURANCE Protect and invest with variable universal life insurance

Variable universal life provides financial protection and the potential to grow your variable life policy's cash value through market-based investments. Over time, the cash value of your variable life policy may increase, helping to support your goals or leave a greater legacy for your loved ones.

Variable universal life offers a long-term death benefit for your loved ones, guaranteeing³ that they will receive a payout if you pass away while the policy is active. (You can take out the policy for as long as you like.) It also has the potential to build cash value, which you can use to help pay for things such as a down payment on a home or to supplement your retirement income as your needs change.¹ Variable universal life policies offer a variety of market investments to potentially increase the amount of these benefits.

Yes, variable universal life offers several tax advantages. Your loved ones typically would not pay federal income taxes on a payout (death benefit) they receive from your policy. Additionally, the cash value of your policy grows tax deferred, meaning you don’t owe federal taxes until you withdraw money from the policy. You can access the variable universal life policy's cash value on a tax-free basis. Of course, accessing the cash value will reduce the available cash surrender value and the death benefit. In that case, your agent would need to help you to structure the policy in order to avoid overfunding it.

Variable universal life policies offer a variety of options that are similar in some ways to mutual funds. You’ll have access to a wide range of expertly managed investments, and you can choose to be more or less involved in putting together your portfolio, depending on your comfort level. No matter what, your agent  will be available to answer your questions and help you make the right choice to meet your needs.

Variable universal life is highly customizable, so you can adjust coverage and investments in many different ways. Your own costs may depend on the policy you choose, the investments or benefits you prefer, ​​the insurance factors revealed during the underwriting process, and the amount of coverage you need. Your agent will help you find the right solution for your budget and goals, and can help you make adjustments in the future if you need.

No. As a variable life policy owner, your cash value grows tax deferred. If you need to access your cash value, you can do so tax free. And in most cases, your beneficiaries will not pay income taxes on the death benefits they receive.

Term life insurance provides temporary coverage, which pays a death benefit if the covered person passes away during that time. It can be a straightforward and affordable way to protect your loved ones for a specific period of time. But unlike variable universal life, it does not accumulate cash value and the premiums you pay are fixed. The cash value of a variable universal life policy fluctuates in response to market conditions. Investment losses are possible.

Variable universal life insurance offers a flexible and comprehensive approach to life insurance coverage, but it does not guarantee the amount of your death benefit. The death benefit can fluctuate based on the performance of the underlying investment options you select. If you would like more stability, you can invest in a fixed-dollar account or add riders and provisions that "lock in" certain benefits. Discussing these options with a New York Life financial professional can help you select a plan that protects your family's future and allows you to meet other financial goals as well.