Variable Universal Life Insurance For Investment And Protection

Variable universal life insurance can be a type of permanent insurance policy with investment. You have access to investment funds to help you realize the highest returns possible. You decide where to put your funds for your protection and investment objectives. The face amount and death benefit may vary based on how the investment portion performs.

This shows variable universal life as an investment. You know the charges and how much goes to investment from the start. Charges include cost of insurance, fund management fees, policy fee and other expenses. As an investor, you reap all the returns but bear all the risks.

Variable universal life policies compared

The government regulates the insurance industry so the principles are the same. Compare policies by looking at the charges. Companies do not charge the same amount of fees. You will know how much you can invest. Look also at how the funds performed in the past. Some funds perform better than the other funds.

Advantages of variable universal life insurance

Flexible investment. You choose where to invest your premium after charges. Companies require minimum allocation per chosen fund and invest in funds based on your risk appetite or investment objectives. In the Philippines, common funds are Peso Bond Fund, Peso Equity Fund, Peso Stable/Balanced Fund and US Dollar Bond Fund.

Fund switching or change in allocation of premium. You can switch your investment from one fund to another subject to certain guidelines. Or you can change the future investment allocation of the premium. You may fund switch or change allocation of premium for a number of times.

Top-up amount. You can add or increase your premium for investment allocation subject to minimum amount and charges. Top ups also increase the amount of your life insurance coverage.

Partial withdrawal. This allows you to get money from your investment anytime, especially during emergency. You can withdraw from one or more funds subject to guidelines.

You see problems with variable universal life policies if you are not willing to take risks. Any investments entail some risks and this is no exception. But you can monitor the performance of your funds as frequent as once a week. You can ask your agent about this.

On the other hand, you can have the best variable universal life insurance policy based on your needs. You can choose between single premium or regular premium policy. Your agent will help establish your risk profile so you will know your investment objectives. Your risk profile and objectives determine your fund allocation...


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