Thoughts on Variable Universal Life Insurance (VUL)? Pros, Cons & Considerations

Hey everyone,

I’ve been doing some research on different types of life insurance and recently came across Variable Universal Life Insurance (VUL). It seems to offer a mix of flexibility, lifetime protection, and investment opportunities, but I wanted to share some info and see what others think or have experienced with it.

What is Variable Universal Life Insurance?

VUL is a type of permanent life insurance that combines:

• A death benefit (like all life insurance),

• The ability to adjust your premium and coverage, and

• A cash value account that can be invested in sub-accounts (similar to mutual funds).

That means your policy's cash value can grow based on the performance of those investments, but it also carries risk.

Why Some People Choose VUL:

• Lifelong coverage if premiums are kept up

• Tax-deferred investment growth within the policy

• Flexibility to adjust contributions and death benefits

• Potential for higher cash value growth if investments do well

What to Watch Out For:

• Market risk, your cash value can go down if the investments perform poorly

• Higher fees compared to term or whole life insurance

• Requires active monitoring of your investments

• If mismanaged, the policy could lapse or lose value

Open Discussion:

• Has anyone here bought or seriously considered a VUL policy?

• Do you feel the investment potential is worth the risk and cost?

• How does it compare to other permanent options like whole life or indexed universal life?

Would love to hear your take, whether you're an agent, policyholder, or just someone weighing options.

Thanks in advance!.