Life insurance that builds tax-deferred cash value and includes features of both variable and universal life insurance coverage. The value of the policy depends upon the performance of the underlying investments selected. Like universal life, the premium and coverage options are flexible, within certain limits. You are subject to investment risk, including loss of principal.
A type of permanent life insurance that permits the owner to vary the amount of protection and premiums and also builds cash value that can be invested in a variety of investment portfolios. Investment earnings on the cash value accumulate tax-deferred and the policy owner can transfer funds among investment portfolios with varying objectives.
A form of life insurance (also called Universal Life II) that combines the flexible premium features of universal life with the investment component of variable life.
Permanent life insurance that combines features of universal life insurance -- such as premium and death benefit flexibility -- with features of variable life insurance -- such as additional investment choices. Variable universal life insurance usually accumulates cash values. (See: permanent life insurance.)
Similar to universal life in that the policy owner chooses the premium to be paid each period, and has the option to increase or decrease the policy death benefit. However, the assets supporting the policy are maintained in one or more separate accounts and the policyowner's values fluctuate (no guarantees).
Form of whole life insurance that combines the premium and death benefit flexibility of universal life insurance with the investment flexibility and risk of variable life insurance.
A type of life insurance that combines a death benefit with a savings element that accumulates tax deferred at current interest rates. Under a variable universal life insurance policy, the cash value in the policy can be placed in a variety of subaccounts with different investment objectives. The policyholder can transfer funds among the subaccounts as he or she wishes. Fees are charged after a certain number of transfers.
A form of life insurance within which the benefits, payable upon death or surrender and/or the premium vary with the investment performance of the assets backing the contract. These contracts usually include a choice of investments, such as stocks, bonds, money market accounts, etc. Earnings from variable life policies are tax-deferred until distributed.
Universal life insurance is a combination of whole life insurance and term life insurance. The pricing of the policy is based on annual renewable term life insurance and increases each year. The premiums are flexible and are designed to cover the costs of the insurance with the difference being applied to a cash value that grows at a given interest rate. Universal life polices are more expensive than term and cheaper than whole life. Some universal life policies offer long term guarantees but most do not. If considering universal life, make sure than you buy a policy hat offers long-term guarantees.
A form of permanent cash value life insurance that combines features of both variable life and universal life. As with universal life, you have flexibility with both premium payments and death benefit coverage. As with variable life, the rate of return on the cash value portion of the policy is not fixed, but rather depends on the performance of the underlying investments selected.
A combination of the features of variable life insurance and universal life insurance under the same contract. Benefits are variable based on the value of underlying equity investments, and premiums and benefits are adjustable at the option of the policyholder.
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. The 'variable' component in the name refers to this ability to invest in volatile investments similar to mutual funds.