Variable-universal life Insurance

-
Variable-universal life Insurance Variable-universal life insurance (VUL) is a type of permanent life insurance that combines the death benefit protection of traditional life insurance with the investment potential of variable investments. This unique combination makes it a versatile option for individuals seeking both financial protection and wealth accumulation. A permanent life insurance policy with the flexibility to change your premium, death benefit, and cash value invested in the stock market. VUL insurance policies are built on traditional universal life insurance policies but have a separate subaccount that invests the cash piece in the market. As a result, the return to the cash component is not guaranteed year after year. VUL insurance policies will have a maximum cap as well as a floor (usually 0%) on the returns that the investment part receives. Key Features of VUL: -Death benefit: VUL provides a guaranteed death benefit that will be paid to your beneficiaries in the event of your death. The death benefit amount typically remains level throughout the policy term. -Cash value: VUL accumulates a cash value component that grows over time based on the performance of the underlying investments. You can access this cash value through withdrawals or loans, though there may be tax implications and potential surrender charges. -Investment options: VUL offers a variety of investment options, typically in the form of mutual funds, that you can choose from to invest your cash value. The investment options available will vary depending on the specific policy you choose. -Premium flexibility: VUL allows you to adjust your premium payments within certain limits. This can be helpful if your income fluctuates or your financial needs change over time. Tax advantages: VUL offers some tax advantages, such as tax-deferred growth on the cash value and potential tax-free access to death benefits. However, it's important to consult with a tax advisor to understand the specific tax implications of VUL. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

Comments

Post a Comment

Thank you for making this valuable comment.

Popular posts from this blog

Disability Appeal

-
Image
Disability Appeal A disability appeal in insurance is a process that allows a policyholder to challenge the denial of their disability insurance claim. If a policyholder's disability claim is denied, they will typically receive a denial letter from the insurance company. The denial letter will explain the reason for the denial and the policyholder's right to appeal. Here are some common reasons why disability insurance claims are denied: -The claim is not covered by the policy. -The policyholder has not met the definition of disability under the policy. -The policyholder has failed to provide sufficient evidence of their disability. -The policyholder has violated the terms of the policy. The insurance company will then review the appeal and make a decision. If the insurance company upholds the denial, the policyholder may have the option to file a lawsuit against the insurance company. Remember during an appeal you must show the court, through substantive evidence and w
Read more

Policyholder (Contract Holder)

-
Image
Policyholder (Contract Holder) A policyholder is the person who purchases and owns an insurance policy. The policyholder is responsible for paying the premiums and is entitled to the benefits of the policy. The policyholder may also be the insured person, but this is not always the case. For example, a parent may purchase a life insurance policy for their child, or a business owner may purchase a health insurance policy for their employees. For life insurance it's a little bit different. You may be the policyholder, but someone else may be the insured party. In addition, you will need to name one or several beneficiaries of the policy. In life insurance, the policyholder owns and controls the policy but is not always the insured. A wife can purchase a term life insurance policy with her husband as the insured and name her adult son and herself as the beneficiaries. As policyholder, she controls the life insurance policy. If her husband dies during the coverage period, the wif
Read more

Offset

-
Image
Offset An offset in insurance is a reduction in the amount of benefits that an insured person is entitled to receive because they are also receiving benefits from another source they receive. Offsets are most common in disability insurance and workers' compensation, but they can also be found in other types of insurance, such as life insurance and health insurance. Insurance companies are not prohibited from applying offsets this because if you were allowed to keep the full amount of all of the various disability benefits to which you might be entitled, it would be possible for you to earn more money on disability than you would by working. There are two main types of offsets: Income offsets: Income offsets reduce the amount of benefits that an insured person is entitled to receive by the amount of other income that they are receiving, such as Social Security Disability Insurance (SSDI) or workers' compensation. Expense offsets: Expense offsets reduce the amount of ben
Read more