Variable Universal life Insurance

Variable Universal life insurance

What Is Variable Universal Life (VUL) Insurance?

Variable universal life (VUL) is a type of permanent life insurance policy with a built-in savings component that allows for the investment of the cash value. Like standard universal life insurance, the premium is flexible. VUL insurance policies typically have both a maximum cap and minimum floor on the investment return associated with the savings component. VUL insurance has variable subaccounts that allow for the investment of the cash value. The function of the subaccounts is similar to a mutual fund.

 Exposure to market fluctuations can generate significant returns, but may also result in substantial losses. This insurance gets its name from the varying results of investment in the ever-fluctuating market. While VUL insurance offers increased flexibility and growth potential over a traditional cash value or whole life insurance policy, policyholders should carefully assess the risks before purchasing it.

Decision Tree Financial does not offer Variable Universal Life Insurance but as part of the financial planning process will recommend it when it is the best solution to accomplish your financial goals.

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