The Advantages Of Getting Variable Universal Life Insurance

Choosing Plans

Our responsibility towards our loved ones does not necessarily end when we die. Much as we would like to believe that everything ends when we die, it does not really happen that way. If you happen to have a family who is dependent on you for support, your obligation to provide for your family continues even after death and that is why there is a need for you to get variable universal life insurance.

The good thing about getting variable universal life insurance is that you can be assured that, in case you die an inopportune death, your family will still be financially well provided for. Whatever assets you have accumulated under this policy will be given as an income tax-free benefit to your beneficiary.

The Variable Universal Life Insurance A Supplemental Retirement Income

A lot of financial planners would recommend the variable universal life insurance to their clients. According to many financial planners, the flexibility of the variable universal life insurance policy makes it’s easier for people to grow their assets during their lifetime and avail of deferred tax payments.

Like an annuity, a variable universal life insurance policy allows for tax-deferred accumulation. This means that by investing your money in a variable universal life insurance policy, you are actually able to save a lot of money.

Aside from the deferred tax payments enjoyed by the variable universal life insurance policy, this type of insurance can be a good part of any retirement plan. This type of life insurance policy also functions much like a savings program where one can use the money they have saved.

The very nature of the variable universal life insurance policy allows the policyholder to borrow the money from the life insurance, for whatever purposes. This feature of the variable universal life insurance policy is very important, especially when you retire and would like to have some supplemental income.

What happens to the policy when you borrow money from it? Every time the policyholder withdraws or borrows money from the policy, the value of the policy shall be considerably decreased.

If the policyholder dies without paying off the borrowed funds from the policy, the outstanding loans will now be deducted from the value of the policy. However, according to experts, our responsibilities toward our family decrease over time so it is still being responsible, technically, as you are not really depriving your beneficiaries of your support in case you end up borrowing heavily on your insurance policy in your twilight years.

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