I was told that VUL are bad unless you are really rich.

tjjes

I was told that the cash value is not yours. What are the pro's and con's about a VUL.

joven222 · Posted: Tue Aug 05, 2008 3:51 pm Post subject:

Here are the risks for Variable Universal Life:

* Cost of Insurance - The cost of insurance for VULs is generally based on term rates.

* Cash Outlay - The cash needed to effectively use a VUL is generally much higher than other types of insurance policies. If a policy does not have the right amount of funding, it may lapse.

* Investment Risk - Because the sub accounts in the VUL may be invested in stocks and bonds, the insured now takes on the investment risk rather than the insurance company.

* Complexity - The VUL is a complex product, and can easily be used (or sold) inappropriately because of this. Proper funding, investing, and planning are usually required in order for the VUL to work as expected.

Source: http://en.wikipedia.org/wiki/Variable_universal_life_insurance

I was told that VUL are bad unless you are really rich.

In Discussion

Blogged

OurCommunityPower.org > Insurance Forum \| Debt Forum \| Mortgage Forum \| Credit Forum