is variable universal life permanent?

by Guest » Tue Apr 22, 2008 06:00 am
Guest

Before opting I'd like to know....if variable universal life a form of permanent life policy!

Total Comments: 20

Posted: Tue Apr 22, 2008 06:23 am Post Subject:

Yes my friend, it is certainly a form of permanent life insurance wherein the death benefit would be reimbursed when the insured dies any point of time till the date of maturity. It has the word 'variable' in its description to signify its nature of investing the amount across multiple accounts. Generally it covers for some 100 years or so. Berrman_jones

Posted: Tue Apr 22, 2008 06:50 am Post Subject: Why it ?

Hi yeah,

You may certainly take it as permanent & also note that it is meant to get special tax benefits under the US IRC. Investment returns get added to the cash value benefit through the life of your policy. Such returns I guess are not meant to be taxed upon.

Another benefit of choosing such policies would be that the VUL have flexi-premium schemes to pick from. In order to ensure the dealth benefit you'd need to pay up the premium on a regular month basis.
Thanx,
PackardBell

Posted: Tue Apr 22, 2008 07:09 am Post Subject:

Generally it covers for some 100 years or so.


But remember that you need to have sufficient cash through all those years to be able to feed the policy costs.

Posted: Thu May 01, 2008 09:36 pm Post Subject:

It is definitely permanent as long as you have a positive cash value or have met the minimum premium requirements.

Posted: Sun May 04, 2008 11:36 pm Post Subject: insurance

How is Universal Life insurance different than 'regular' Life Insurance?

Posted: Mon May 05, 2008 03:14 pm Post Subject:

It covers you anywhere in the Universe!

No, really, Universal Life is one of two catagories of "permanent" life insurance the other being Whole Life.

Some old timers refer to Whole life as "regular" life insurance but I don't think that's what you mean.

I'm guessing you think of term as "regular". It's the kind you buy that has a set rate guarantee period of usually 10, 15, 20 or 30 years.

Then main difference is permanence. The other is that Universal and Whole life have a cash accumulation element built in.

Posted: Tue May 06, 2008 02:15 am Post Subject: insurance

SOO........Permanent you can have until your life ends ( lack of a better way to say it)? Isn't Whole the same thing? I know people who actually have Whole Life until the age of 99 years old. What's the diffrerence there? They BOTH build cash value?

Posted: Tue May 06, 2008 06:37 pm Post Subject:

SOO........Permanent you can have until your life ends ( lack of a better way to say it)? Isn't Whole the same thing?



Universal Life is one of two catagories of "permanent" life insurance the other being Whole Life.



Universal and Whole life are similar products. The biggest and easiest to explain difference is that in most Whole Life policies the premium, interest rate, cash value and death benefit are all guaranteed and never change as long as the premium is paid. Whereas with UL, the interest rate fluctuates and the death benefit and premium can be adjusted by the policyowner subject to certain provisions.

As for the Whole life to age 99 thing, contracts that I've seen have the policy maturing on that date, meaning if the insured is still living and the policy is still in force they pay the death benefit to the policyowner at age 99.

Posted: Wed May 07, 2008 03:09 am Post Subject: insurance

OH!! OK...I catchca!! Good explaination. Would the premiums be the same? I mean..the monthly payments..would the be GREATER than a 'regualar' Whole Life policy?

Posted: Wed May 07, 2008 03:00 pm Post Subject:

Well, generally Whole Life has a higher premium than the "target" premium on a Universal Life with the same amount of coverage.

But the flexible premium nature of the Universal Life policy allows the ability to pay more or less than the "target" premium which is the companies suggested premium for best policy performance.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.