Variable Universal Life Insurance - Policy Quotes and Research Information

With the plethora of insurance policies available, you are sure to find a policy that is tailored fit. All it requires is a little forethought, research and of course, 1st Insurance Quotes.com. To guide you on your way, we have devoted this page to helping you understand Variable Universal Life Insurance. You may discover that it is just the right choice for you!

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History has revealed just how old the concept of insurance is. Would you believe 2100 B.C.? At the time, there was a certain amount of risk associated with caravan trade, and traders were encouraged to assume these risks with loans that were only repaid once the shipment was delivered. Today, insurance concepts are not quite as simple, but insurance remains a universal need! The most important thing to keep in mind is your individual requirements. After all, if you were not a trader, what benefit would you reap from 'insuring' the safe arrival of goods?

Variable Universal Life Insurance is a unique blending of permanent life insurance and investment flexibility. This type of policy provides lifetime insurance protection, as well as an opportunity to invest in tomorrow. Simply put variable universal policies are divided into two parts. The first part pays for the cost of your policy. The second part is distributed among sub accounts that are invested in cash equivalent vehicles of your choice. Popular portfolios include stock, bond, balanced, international and money-market accounts. Still others choose a fixed-rate general account. Each of these sub accounts has the potential for tax-free cash accumulation.

There are a number of factors to keep in mind, when considering a variable universal policy:

The performance of your investments will directly impact your death benefit and the policy's cash value. As the policyholder, you will need to devote an appropriate amount of time to the management of your accounts.

Variable universal insurance programs permit you to make withdrawals or borrow from the policy. Policyholders often choose to utilize their policy to build a college fund, provide for a deferred compensation plan or to serve as a supplement to their retirement income.

There are a number of tax advantages to contemplate. As mentioned, cash accumulates tax-free. In addition, the death benefit is typically tax-exempt, as are any policy loans. However, keep in mind that withdrawals and policy loans affect the policy's overall cash value and death benefit. Be sure to consult your agent before making any type of withdrawals - they will be able to advise you of your best options!

Flexibility! Flexibility! Flexibility! As your insurance needs change, variable universal life insurance generally provides you with the option of increasing or decreasing the amount of coverage. Additionally, funds can be transferred between your sub accounts (investments) tax-free. The result? Freedom to make decisions best for you and your family!

For some, the premiums associated with variable universal insurance can seem a bit daunting. After all, small premium amounts will not cover your insurance and your investment accounts.

And finally, rates and coverage greatly vary from state to state and insurance company to insurance company.

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