Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Risk and Return possibilities. Or visa versa. What I will do is list my thoughts on Variable life and you can decide if it's a pro or a con to having a VUL.
Requires consistent steady review by insured.
Requires rebalancing over time.
Requires the insured to make investment choices and live with the results.
Requires the insured to have financial knowledge about mutual funds.
Requires the insured to have an understanding of financial risk.
So depending about how you feel about the requirements as they can be either pro or con, depending on the individual, should determine how you feel about a VUL as a choice.
While it is easy to reference "potential for greater returns" that doesn't say anything about how to get greater returns, those requirements listed put you on track for greater returns, but that said, it doesn't guarantee greater returns.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Very simply, Variable products are tied to the stock market and thus are exposed to risk. Just as is the case when a person invests in the stock market or any other vehicles tied to the market there is the chance that there may be gains, and there is the possibility that there will be losses. The biggest "pro" is that the death benefit is guaranteed and will not be lost no matter how poorly the market performs.
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Requires consistent steady review by insured.
Requires rebalancing over time.
Requires the insured to make investment choices and live with the results.
Requires the insured to have financial knowledge about mutual funds.
Requires the insured to have an understanding of financial risk.
So depending about how you feel about the requirements as they can be either pro or con, depending on the individual, should determine how you feel about a VUL as a choice.
While it is easy to reference "potential for greater returns" that doesn't say anything about how to get greater returns, those requirements listed put you on track for greater returns, but that said, it doesn't guarantee greater returns.