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

Variable universal life offers you the ability to protect your loved ones financially as well as the opportunity to invest your policy’s cash value in investment options that are exposed to the markets’ upside potential and risks. There is greater growth potential than other types of life insurance, but there is also market risk. Over time, the cash value of your policy may increase, helping to fund the important things in life or leaving a greater legacy for your loved ones. Accessing the cash value will reduce the available cash surrender value and the death benefit.

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.) Variable universal life also has the potential to build cash value, which you can access 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. If you do access some of the policy’s cash value, you usually won’t pay any income taxes until you withdraw more money from the policy than you put in. In that case, your agent would need to help you to structure the policy in order to avoid overfunding it. Also, keep in mind that accessing the cash value will reduce the cash surrender value and the death benefit.

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.