VUL Meaning and
Definition
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VUL, an abbreviation for Variable Universal Life, is a type of life insurance policy that combines elements of both life insurance and investment. It is a flexible insurance product that provides a death benefit to the policyholder's beneficiaries upon their passing, while also allowing the policyholder to accumulate cash value over time.
The "variable" aspect of VUL refers to the investment component of the policy. Unlike traditional life insurance policies, VUL policies allow policyholders to allocate a portion of their premium payments towards various investment options, such as stocks, bonds, or mutual funds. This investment portion of the policy grows tax-deferred, meaning the policyholder does not have to pay income taxes on the earnings until they withdraw or surrender the policy.
The "universal" aspect of VUL refers to the flexibility of the policy. Policyholders have the freedom to adjust their premium payments and death benefits according to their needs, within certain limits set by the insurance company. This flexibility allows policyholders to adapt their coverage as their financial circumstances change.
VUL policies are often targeted towards individuals who seek both life insurance protection and the potential for investment growth. They offer a degree of flexibility and control over investment choices that may appeal to those comfortable with investment risk. It is important to note that VUL policies may come with higher fees and expenses compared to traditional life insurance policies, as managing the investment component requires additional administrative costs.
Common Misspellings for VUL
- v8l
- v7l
- bvul
- vbul
- gvul
- vyul
- vuyl
- vhul
- vjul
- vujl
- v8ul
- vu8l
- v7ul
- vu7l
- vvul
- vuul
- v ul
- vu l
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