Is the death benefit fixed in a variable universal life policy?
A variable universal life policy is the most flexible type of permanent life insurance. You can adjust the amount of the death benefit as well as how often (and how much) you'll pay in premiums once you've contributed enough towards the policy.
What is the death benefit of a variable life insurance policy?
What Is a Variable Death Benefit? Variable death benefit refers to the amount paid to a decedent's beneficiary that is based on the performance of an investment account within a variable universal life insurance policy, a financial product that functions as both insurance and an investment.
What are the benefits of variable universal life?
The pros of variable universal life insurance include four considerations. First, there's a death benefit that's often income tax free. Second, there's the potential to grow your money tax-deferred. Third, you can adjust payment timing and amount within the limits of your contract.
How many death benefit options does a universal life policy have?
Universal life has two basic death benefit options. Option A is a level death benefit, called the specified or face amount. Option B is the face amount plus the cash value. In Option A, more of your payment goes toward building the cash value; in Option B, more goes toward raising the death benefit through investing.