A case for variable life
Article Abstract:
Variable life insurance has been criticized as too risky and expensive but these criticisms are based on misconceptions. Variable life offers many advantages to policyholders in that, over the long-term, they tend to have higher rates of return than general life insurance accounts. The variable life accounts are protected from the insurance company's creditors and better disclosure regulations protect the consumer. The risk can be managed to match the policyholder's risk tolerance and the costs are not significantly different between variable and general accounts.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1997
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Is variable universal life an appropriate funding vehicle for deferred compensation plans?
Article Abstract:
Variable universal life insurance (VUL) is not an appropriate funding vehicle for supplemental executive retirement programs because it is a Internal Revenue Code construct rather than a genuine investment vehicle. The common presentation of VUL's predicts 10% to 12% returns without accounting for the volatility of the market or for standard deviations. The VUL tax benefits are not significant enough to counteract the higher cost and may be subject to elimination in the current political environment.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1996
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Variable universal life: the "Swiss army knife" of financial planning
Article Abstract:
Variable universal life insurance contracts are the perfect financial planning tool because they enable consumers to accrue tax-deferred funds, manage their funds without charges and withdraw the cost basis without penalties. The cost basis in the contract can be reduced to minimize or avoid estate taxes, assets are protected from the insurance company's creditors and the contract's flexibility allows consumers to determine their rate of investment. Other advantages are addressed.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1995
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