What is Variable Universal Life (VUL) insurance?
A. Variable universal life insurance is permanent insurance that combines the core benefit of life insurance – protection for beneficiaries through an income-tax free death benefit – with significant flexibility for investors. It permits investors to structure policies to help meet their personal or business objectives through flexibility in premium payments, investment options, and death benefits. Variable universal life insurance involves the risk of investing in equity securities, including market risk and loss of principal. If the investment performance of underlying investments is poorer than expected (or if sufficient premiums are not paid), the policy may lapse or not accumulate sufficient value to fund the intended application. Investments in variable universal life insurance policies are subject to fees and charges from both the insurance company and the managers of underlying investments.
