Variable Universal Life Insurance Policy

One of type of insurance is the VUL or Variable Universal Life insurance. This type of insurance is specific kinds of life universal insurance for it give or offer people some substantial control over the value of their policy cash. Variable universal life insurance is also a form of permanent insurance and permanent life insurance such as this has death benefits for the insured. The variable universal life insurance has 3 functions.

  • The universal function which gives the function of flexibility to your premium payment that could vary from none or zero to maximum premium that internal revenue service will allow.
  • The variable function this function has the ability to invest various value of money in separate accounts due to its ties in bond markets and stocks.
  • The last one is life insurance function this gives or provides you with the death benefit that is if the cash value will be high enough to cover amount.
  • Under the VUL insurance there are some various features that could be categorized into five.
  • Financial Need. This type of insurance can help your family during financial crisis when a premature or a sudden death occurs.
  • Retirement. The VUL also has features like a tax free loan. It’s because of this that a policy can also become an income source for retirement provided that your retirement will not be in immediate in the future.
  • Tax advantage. This life type of life insurance features a tax deferred to it, like if your policy is highly funded then the tax benefit can offset the cost of your policy.
  • Estate planning. The insured can also use his VUL as a life insurance trust by doing this it will reduce the tax estate at the time of death of the insured.

When there are advantages there will always be disadvantages such as.

As the saying goes nothing is perfect in this world and their two side of every coin just like insurance if there are pros theirs also cons, every insurance carries a degree of risk to it including VUL insurance. One of the problems you will encounter will be the fluctuation of your account values over time and that they may go below the amount of your paid premiums.

In order to continue with your benefit over several years you might have to increase your premium rate if the deposits in your investment will have negative returns.

These are only few of the problems you will likely encounter with a VUL insurance that is why it is important to prepare and equipped yourself well with knowledge about VUL insurance before you decide to get one.

Why Life Insurance Is Good

Today, many people often do not know the vast benefits they can enjoy from owning life insurance policies. While they know it is important to protect themselves well, what they fail to see is that they can also maximize the rewards this kind of policy brings and use it to their advantage. To know how you can benefit from life insurance, you must read on!

As many may not know, life insurance can have good internal rates of return and living benefits. The good internal rate of return here lies in the fact that the interest paid on cash value insured by company and its dividends can build up as premium increases. This will offer you some returns which you can use to invest and at the same time protecting you.

Moreover, it also offers tax protection as the increases in cash value is tax-deferred or even tax-free. Free from the watchful eyes of financial predators like the government, you control more resources to invest and this tax advantage you have over others can allow you to gain wealth more easily.

Furthermore, there are waivers of premium riders and disability protection provided by life insurance if the policyholder is disabled throughout term of policy, allowing rider to pay for policy. This will remove the need to pay premiums and this component is extremely important as it also covers disability which can increase expenses. Here, it will be hard to recover your human life value and compensation if you are not insured.

In addition, it offers liability protection where in the case a policyholder is sued, plaintiffs cannot access the cash value. This will help protect your money and at the same time, leave behind sufficient money for your family should legal affairs trouble you.

To add on, life insurance gives you the ability to utilize the cash value via policy loans and dividend withdrawals to make investments. Here, you simply get back your money and reinvest it in other investment engines to generate greater wealth.

Lastly, it allows you to leverage assets freely. For example, you get to keep the 1 million in assets, 1 million in death benefit and 1 million in cash value should you need to access them. Also, this provides you certainty that you, your greatest and most important asset is protected till the day you die.

Hence, in conclusion, after knowing how much benefits life insurance can bring, I believe readers have a better understanding on how they should protect themselves well but also smartly. Now, share this piece of knowledge with your close ones and grow your money together with them!

Tax On Life Insurance – Who Will Owe Money

There are many kinds of life insurance to choose from. These are offered from different insurance companies worldwide or in your area. It is one of the bases with regards to protecting your financial stability after your death.

With regards to the cost of life insurance, it varies depending on many factors. Such as the insured’s age, health as well as occupation. There are many types of life coverage such as whole life, universal life, variable life, term life, etc.

Life insurance is confusing sometimes. It is so important that you understand the entire process such as knowing how much the premiums are and if there are taxes on death benefits. It is written in the Internal Revenue Code Sec. 101 that manners in which insurance payouts can be taxed and taxes on insurance do not apply.

Actually life insurance proceeds are not taxable on their own, but most of the other forms of inheritance are taxable. These include dividend, interest and capital gains income. What is taxable is that if your life insurance death benefits is $100,000 for example, then you receive more than that let say $110,000. The taxable part is only the exceeding part or what we called extra, which is $10,000. Since benefits are generally tax free wherein you don’t need to report it on your income tax. If ever you receive the exact amount of $100,000 then its tax free.

The proceeds of life insurance are tax free but there are also several factors where in it could make the proceeds taxable income especially to beneficiaries. So, always be careful in choosing insurance and always read the insurance policy and understand what covers and benefits it gives you. It is important that before purchasing any policy, you need to educate yourself. Once you have knowledge on where your money goes, what is taxable in your insurance policy the better off you’ll be. Do your research online for easy, fast and convenient way where in you own your time and day to log in.

Remember that most policies are subject to premium limits, in short a certain set of amount that can be contributed each year and take note also that you need to avoid policies from building up too quickly and become tax sheltered investments.

If you have what is known as incidents of ownership in the policy then proceeds of your policy may be subject to federal estate taxes so be careful. Always be sure you understand the policy you have and ask if ever you don’t understand. As customer, you have the right to ask question regarding on your life insurance.

Choose the insurance company that have good service and willing to explain what you don’t understand in your life insurance policy especially when regards to being taxable.

Is Your Life Insurance Company One of The Biggest?

Life insurance companies are the most profitable businesses these days. Moreover, companies selling policies are among the most influential corporations in the world.

These well-known and biggest companies provide affordable policies that benefit consumers. Economical stability of the insurance industry helps these companies to make the most of the consumers’ money with an attractive cash return.

Metropolitan Life Insurance Company (MetLife), Transamerica Occidental Insurance Company and American General Insurance Company (AIG) are some of the recognizable brands in the United States. These companies deal mostly with life insurance. They handle both term and whole life insurance policies in an easy and comfortable manner.

Details on These Giants:

All the biggest companies work with similar principles. They provide life coverage policies to fulfill the needs of the customers. However, they differ in their coverage plans and terms.

Metropolitan Life Insurance Company offers definite service factors, simple policy administration and reliable operations. They offer the best solution and service, in case of financial planning. MetLife handles $2 trillion worth of policies and therefore, is considered as one of the biggest insurer in the United States. MetLife provides financial holding with a countrywide-chartered bank.

MetLife also offers services in Asia and Europe, and serves customers as a part of Reinsurance Group of America. In 2005, MetLife received the certification of biggest life insurer in the United States, with the implementation of traveler’s life and allowance group. MetLife offers both term and whole life policies at a cheap rate and avoids rider.

According to the press releases, American General insurance Company is another of the biggest insurance company in the United States. The company is a worldwide leader in financial service that deals with insurance, retirement planning and investment. This company is spread internationally all over Asia, North America, Europe, Latin America and the Middle East, as AIG (American International Group).

AIG provides savings on life policies at affordable rates. Online quotes offer an effortless and hassle free shopping option to their customers. AIG plans include term life, whole life and universal life insurance coverage. However, their term life policy is the most widely used as compared to others.

The Transamerica Corporation is the parent firm of various life insurance and investment companies. Among these firms, Transamerica Occidental Life Insurance Company is the biggest insurer. They also handle affordable policies, including term, whole and universal.


All the above listed companies sell these policies at affordable rates and assure security to their customers. These qualities make them the giant figures in the industry. These companies earn huge profits from the premiums paid by their customers.

These premiums are termed as float and the status of float, leads to the life insurance company’s success. Certain financial rating companies such as A.M Best, Fitch, Diamond Bond, and Standard and Poor evaluate the status of these companies annually. Their findings show that, MetLife, AIG, TOIC and Prudential are the four biggest companies.

People often choose one of these big companies for security it offers compared to lesser know brands. To see how much such things could cost you please consult one of the links below.

The Necessity of International Travel Insurance

Everyone has an innate desire to travel abroad and go to places they’ve never been before. It certainly would be an exhilarating experience worth remembering for life.

Indeed, traveling abroad is exciting but there are things you need to brace yourself up with before you fly. These include international travel insurance. It isn’t a scam. Actually, it can be considered as a life saver in some ways. You’ll fully understand its importance once you get to your destination.

Basically, if you have international travel insurance at hand, you will never be anxious instead, you’ll have peace of mind. This is not a sales pitch. Take note, you are traveling to another country. You don’t know what to expect, right? Driving your way to a different state that has unfamiliar symbols and signs around with different names and places can be very disorienting. Good for you, if they speak the same language as yours or at least know how to speak the language you speak of.

Being in a foreign land can be discomforting as well as alarming at times. But with international travel insurance it will make it less so. Therefore, never hesitate to apply for international travel insurance before you leave the country.

Aside from having peace of mind, international travel insurance can also grant you safety. You can be spared from many paradoxes you may encounter along the way. For example, you are looking for a doctor and since let’s say, you are in Portugal, it would be easy if you speak Portuguese. Now, what if you can speak Portuguese, would you still need an English speaking doctor?

Another example, let’s put it in this case, if you happen to lose your passport, the easiest solution would be to go to your Embassy. Now, how are you going to do that when you can’t get inside the Embassy without showing your passport?

This is where International travel insurance serves its purpose. It provides solutions to these paradoxes and helps you get away from these difficult situations. Aside from that, it helps youin recovering nonrefundable costs in delays and cancellation as well as it aids you with emergency medical care.

Indeed, going to places you’ve never been can be an exciting experience. Seeing the world’s best tourist destinations such as France and Italy will certainly be a memorable experience. You may bump into some unexpected and unwanted events, like what was above mentioned; having international travel insurance will be your guarantee for a safe and worry-free trip.