Variable Universal Life Insurance
What is variable universal life insurance?
Variable universal life insurance is a type of permanent life insurance that provides coverage for life. Like other types of universal life insurance, it has a death benefit, which is paid to your beneficiaries, as well as a cash value component. Unlike other types of universal life insurance, with variable universal life insurance, you can invest the cash value portion of your policy into professionally managed accounts that are invested in stock and bond markets, providing growth potential.1
When your cash value is sufficient, it may be accessed through withdrawals and loans to help with many needs such as college expenses - supplementing retirement income, or health emergencies.2 Depending on your policy value, you may also adjust the timing and the amount of your premium payments.3 This flexibility can be a valuable benefit when you need it.
Life can get expensive. Put your hard-earned money to work by choosing investment options that align with your financial goals and risk tolerance, such as growth or preservation of capital.
What are the benefits of variable universal life insurance?
Variable universal life insurance is a form of permanent life insurance that provides death benefit protection. In addition to the death benefit, there is also a cash value portion of the policy, which can be invested into investment options.
This exposure to underlying investments, such as stocks and bonds, offers the opportunity for cash value accumulation over time. Keep in mind that the policy owner bears the the investment risk for the investment options, including the possible loss of principal.
Similar to universal life, variable universal life insurance allows the policyholder to adjust premium payments or death benefit as needed in order to meet their changing circumstances. There are fees and charges associated with variable universal life insurance that are not applicable to other types of policies.
1Both the principal value and return of investment options will fluctuate over time. When redeemed they may be worth less than the original cost.
2Loans and withdrawals will reduce the policy value and death benefit. Loans are subject to interest charges. If a policy lapses while a loan is outstanding, adverse tax consequences may result. Policy owners should consult with their tax advisor regarding their particular situation.
3Subject to certain limitations, premiums may be increased, decreased, skipped or stopped altogether if there is sufficient cash surrender value in the policy. The risk of a policy lapsing increases if regular premiums are not paid.
For any variable universal life insurance (VUL) policy you are considering, please contact Transamerica for a prospectus that contains complete information about the VUL including fees, investments objectives, surrender charges, risks, expenses and other important information about the VUL. Please consider all these important factors carefully before investing. VUL investment options are subject to market risk and may lose value.