You may even skip premium payments as long as the cash value is sufficient to cover all of the costs of the insurance. You can raise or lower the death benefit, although increases in death benefit may require proof of insurability. This product has a guaranteed minimum face amount and fixed premiums similar to traditional whole life. However, there is no minimum guaranteed rate of investment return or cash value, and the death benefit is variable based on investment performance. Variable Universal Life - A combination of the flexibility of premium payments of the universal life policy, with the investment direction feature of the variable life policy.
Premiums are lower than for equivalent coverage in two separate policies.
This product is often used to help pay estate taxes. Single Premium Life. Requires a single, large, front-end premium payment to keep the coverage in force for the life of the insured. Similarly, a policy that allows you to earn more by making your own investment decisions may not protect you from your poor investment choices. Some of the situations in which people purchase permanent or whole life insurance policies include the time needed to shift the risk is over 15 years.