VUL typically allows you to raise or lower your premiums on an annual basis. Advantages of using life insurance as a savings vehicle It provides life insurance protection for your family. The cash value grows tax deferred until withdrawn or surrendered. You may be able to combine a policy loan with a policy withdrawal. Depending on the specific type of cash value policy, some of these advantages may apply in varying degrees or not at all.
Premiums are typically more expensive than term life insurance premiums.
The amount of insurance you can purchase may be limited. Your cash value contributions may be limited. Tax-deferred growth may be lost if cash value gets too high relative to policy death benefit. The underlying investments may be subject to fees and potential losses. Surrender charges may be levied on withdrawals made during the early years of the policy.