Which is true concerning a variable universal life policy?
Which statement is true concerning a Variable Universal Life policy? With Variable Universal Life, the policyowner controls the investment of cash values and selects the timing and amount of premium payments. T has a term policy that allows him to continue the coverage after expiration of the initial policy period.Click to see full answer. Similarly,…
Which statement is true concerning a Variable Universal Life policy? With Variable Universal Life, the policyowner controls the investment of cash values and selects the timing and amount of premium payments. T has a term policy that allows him to continue the coverage after expiration of the initial policy period.Click to see full answer. Similarly, you may ask, are variable universal life policies good? Variable Universal Life: The Good The value of the policy will grow over time, as long as you continue making premium payments and have positive investment returns. This investment growth is tax-deferred until you take withdrawals from the policy. The taxation of VUL policies is their primary advantage.Secondly, how does a typical variable life policy investment account grow? K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. Beside above, what is the difference between variable life insurance and variable universal life insurance? Variable life insurance is a type of permanent life insurance with a cash value and with investment options that work like a mutual fund. Universal life insurance is a type of permanent life insurance with a cash value that grows based on the current interest rate set by the insurer.What is variable life insurance and how does it work?Variable life insurance is a form of life insurance. Like other life insurance, it provides a death benefit that may be significantly larger than the amount of premiums you pay. With a variable life insurance policy, you will be required to pay premiums into an account.
