Variable Universal Life Insurance

Variable universal life insurance combines valuable life insurance protection with a variety of investment options to fit your individual financial needs. 

How does Variable Universal Life work?

Variable Universal Life (VUL) is a form of cash-value life insurance that offers both a death benefit and an investment feature. The premium amount for VUL is flexible and may be changed by the policyowner as needed, though these changes can result in a change in the coverage amount. The investment feature includes “sub-accounts,” which function very similar to mutual funds and can provide the possibility of a long-term cash accumulation potential greater than a fixed universal life or a traditional whole life.

You have the ability to increase or decrease the amount of your coverage at any time – without buying a new policy (proof of insurability may be required for increase). You select the amount and frequency of your premium payments (subject to specified minimums and maximums). As long as there is adequate cash value to pay policy expenses, you can:

  • Increase premiums to accumulate cash value more rapidly or to eliminate premiums in later years
  • Decrease premiums when cash flow is a consideration
  • Stop premiums for a period of time


Key benefits

Why is this important?

Premium flexibility The ability to increase or decrease premiums in the future to accommodate your budget or cash flow needs.
Death benefit flexibility The option to adjust the policy’s death benefit should your life insurance protection needs change in the future.
Builds cash value

Accumulates valuable long-term cash values for future cash needs such as helping fund a child’s college education, paying off your mortgage early, funding a business opportunity or supplementing retirement income.

Tax advantages

Life insurance death proceeds are paid out income-tax free and the IUL policy’s cash values accumulate tax-deferred, an important feature when you consider how taxation can have an adverse effect on your savings growth potential.

Favorable loan feature The ability to access the IUL policy’s cash value tax-free through policy loans allows you to maximize your cash needs without sacrificing valuable life insurance protection. (Loan balances will reduce the death benefit.)

The option to design an IUL policy that reflects your particular needs and situation.

Investment options

A Variable Universal Life policy allows you to decide how to invest your contract value. You can choose a variety of investments, some of which offer the potential for higher returns. Of course, investing in variable subaccounts involves risks that should be considered before making these choices.

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  1. A Variable Universal Life (VUL) policy is considered both life insurance and a security and is sold with a prospectus. Premium and death benefit types are flexible. It’s crediting rate is based on the performance of the underlying investment options provided in the policy. There is no guaranteed interest rate. This type of policy may lapse due to low or negative performance of the underlying investment options, inadequate funding, and increasing cost of insurance rates. See your policy prospectus for more information.
  2. Variable insurance products, their underlying investment options, mutual funds and ETFs are sold by prospectus only. Prospectuses contain important information, including fees and expenses. Please read the prospectus carefully before investing or sending money. You should consider the investment objectives, risks, fees and charges of the investment company carefully before investing. Please contact your investment professional for a prospectus, which contains this and other important information.