How much Variable Universal Life costs you depends on a number of factors, some are flexible, some are not.
Universal life is a complex product that unbundles the components of a whole life policy to provide you with more control and flexibility. The basic building blocks are cost of insurance, expense charges and investment earnings.
There are a number of death benefit options available which affect the cost of insurance. For example you can have a level death benefit or level insurance plus cash value. The cost of insurance can be annually increasing for life, annual increasing then paid up at 85, level and a number of other options that vary by company.
The expense portion of the premium is stated in the policy. Some expenses are fixed and guaranteed others are variable so you would need to refer to the policy for details.
In Canada, the earnings inside a universal life policy are always expressed as interest. Some policies have 400+ investment options that, in addition to Guaranteed Interest, can mirror the performance (positive or negative) of a variety of mutual funds in a tax preferred environment. I say mirror, because you do not actually own units in the particular mutual fund, just the performance.
In Canada, the total maximum premium to keep the policy exempt for accrual taxation is set by the government. This provides you with flexibility, it is important that you understand that if the the policy is underfunded it could go out of force. The policy needs to be managed.
So how much does Variable Universal Life Cost? It depends.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further question, or feel tat I could be of assistance, please do not hesitate to contact me.
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Universal life is a complex product that unbundles the components of a whole life policy to provide you with more control and flexibility. The basic building blocks are cost of insurance, expense charges and investment earnings.
There are a number of death benefit options available which affect the cost of insurance. For example you can have a level death benefit or level insurance plus cash value. The cost of insurance can be annually increasing for life, annual increasing then paid up at 85, level and a number of other options that vary by company.
The expense portion of the premium is stated in the policy. Some expenses are fixed and guaranteed others are variable so you would need to refer to the policy for details.
In Canada, the earnings inside a universal life policy are always expressed as interest. Some policies have 400+ investment options that, in addition to Guaranteed Interest, can mirror the performance (positive or negative) of a variety of mutual funds in a tax preferred environment. I say mirror, because you do not actually own units in the particular mutual fund, just the performance.
In Canada, the total maximum premium to keep the policy exempt for accrual taxation is set by the government. This provides you with flexibility, it is important that you understand that if the the policy is underfunded it could go out of force. The policy needs to be managed.
So how much does Variable Universal Life Cost? It depends.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further question, or feel tat I could be of assistance, please do not hesitate to contact me.