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Variable universal life insurance (often shortened to VUL) is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to use is entirely up to the contract owner.
Variable universal life insurance is a type of permanent life insurance policy, like whole life insurance. The growth in a VUL’s cash value is tax-deferred, like growth in a health savings ...
Variable universal life. These policies allow the insured to invest the cash value component in a variety of securities like stocks, bonds and mutual funds. ... Universal Life Insurance vs. Whole ...
A similar type of policy that was developed from universal life insurance is the variable universal life insurance policy (VUL). VUL lets the cash value be directed to a number of separate accounts that operate like mutual funds and can be invested in stock or bond investments with greater risk and potential growth.
However, universal life policies run a much greater risk, and are actually designed to lapse. Variable universal life insurance may outperform whole life because the owner can direct investments in sub-accounts that may do better. If an owner desires a conservative position for his cash values, par whole life is indicated.
Universal life insurance (UL) is like whole life’s flexible cousin. UL policies still provide lifetime coverage, but they allow you to adjust your premiums and the death benefit if your needs or ...
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