Variable Universal Life Insurance: Take Charge of Your Policy

Take the Good with the Bad of a Variable Universal Life Insurance Policy

 By Rafael Onak, InsuranceAgents.com Staff Writer

 If you're an individual who likes to be in charge, especially if your name is Charles, a variable universal life insurance policy is the coverage for you. A mix of variable life and universal life insurance, a variable universal policy offers its policyholders flexible premiums and a modifiable death benefit. The amount you receive from a death benefit may increase or decrease depending on the success of the investment you choose. With the right investment, however, you can generate significant cash value with a variable universal life insurance policy. Compare life insurance rates and policies to gain the most beneift from your policy.  Use our quick comparison form.

Since the mechanics behind a variable universal life insurance policy are composed of a lot of mumbo-jumbo, here is what you need to be aware of: when the value of an investment decreases, a variable universal policy ensures that a minimum death benefit will still be paid to your beneficiary.

Just like any other policy, a variable universal life insurance policy consists of pros and cons that every potential holder should consider.

 Pros of Variable Universal Life Insurance

• Offers premium and death benefit flexibility
• Depending on the performance of your funds, the cash value of your policy can increase
• Allows you to take out or borrow money from your policy during your lifetime

Cons of Variable Universal Life Insurance

• Compared to other types of permanent life insurance, variable life insurance is one of the most expensive
• In order to get the most out of the policy, the holder needs to have an understanding of bonds, securities and stocks
• The policy's success depends on the investment and if it fails, so will the policy

Individuals interested in obtaining a variable life insurance policy should do so at an early age. Not only are insurance costs cheaper then, but the cash value of a policy will have more years to build on. With as many cons as it has pros, however, potential holders should consult with a life insurance agent before purchasing a variable universal life insurance policy.

Published: Tuesday 24th November 2009