Among the various kinds of insurances available, the life insurance is the most important one to buy first. It is also the one that costs more than the other insurances. The types of life insurance are the whole life, the universal life, the variable and the variable universal life.
There are indeed different types of life insurances available to us. You can choose the one that will cater to your needs and personal preferences. If you decide to buy the variable universal life insurance, this is a type that allows better control of your cash value. It gives you premiums that are flexible and death benefits can be adjusted. You are given the option to invest the cash value in provided separate accounts. You can also invest stocks and bonds. As a type of a permanent life insurance, death benefits are given to the beneficiary stated.
This type of insurance allows your cash value to increase. However, there is also a chance that the value will go down due to its connection to the market. The cash value is continually changing depending on the market condition; today, the value goes up then crashes down the next day.
The benefits gained by choosing the variable universal life insurance are the flexibility of the premiums and the death benefit as well. This also includes the possibility of an increase in the cash value; this depends on the condition of the underlying funds. When you are in need of money, this insurance allows borrowing of money all throughout your life. There are disadvantages as well with this type of insurance. One of this is it is more expensive compared to the other insurance types. In order to cover the charges from the underlying funds' expenses, insurance expenses and also the mortality expenses, the premiums are highly priced. This type of insurance is not easy to manage; you have to understand the processes involved. It is also not ideal if you do not have the time to devote in managing this insurance, since the owner is specifically the one managing the investments.
If you want flexibility and a chance to allow growth of your cash value, then variable universal life insurance is a good choice. The only drawback to this kind of insurance is that you have to manage it yourself. This is not ideal for people with careers, and it can also be quite inconvenient for some. It offers many benefits that will surely be of great help to you and your beneficiaries in the future.
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Variable Universal Life Insurance