5 Advantages of Variable Unit Linked (VUL) Life Insurance

Variable universal life (VUL) is a type of permanent life insurance policy with a built-in savings component which allows the policyholder to gain funds or cash value over time.

Here are five of the best benefits and advantages one can get from VUL, and why you might want to consider getting one now.

1. Non-Taxable Death Benefit

100% guarantee that your beneficiaries will receive the Death Benefit and Investment returns without any estate tax deductions to the government. Do note that the tax exemptions only apply to irrevocable beneficiaries.

2. Investment Money Can be Withdrawn

In times when you need fund for emergency reasons like medical bills, your child's tuition or any financial need, you may be able to partially or fully  withdraw your policy fund value which is the investment of your VUL Policy - It is your money anyway!

3. Health Coverage Through Riders

Not all types of insurance have riders which may include insurance coverage for Critical Illness, Accidents and Hospital Income Benefits. These riders are best advised for those that are prone to have these SAD events.

4. Higher Investment Returns Potential

Insurance with Investment is a smart way to prepare for your retirement age. The premium payment are invested in variety of assets like bonds, stocks and money market. This increases your chance of getting higher investment returns as compared to putting your money in the bank.

5. You Will be Forced to Save

Nowadays, Insurance is not just an expense but a need. Paying a portion of your monthly income for the premium payments gives you that sense of responsibility to prepare for the future.

So what do you think about VUL? Got more questions about how VUL works and what are its other benefits? Then feel free to leave a comment below, and will make sure to answer your questions.

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