One of my friend Henry for over 20 years of the insurance company experience and have been selling variable universal life insurance or VUL policies to their customers.


His law firm has handled many cases involving these products over the years in his opinion variable universal life insurance policies are rarely if ever an appropriate investment choice, in fact, variable universal life insurance  is typically very expensive than other  poor investment choices and do not work as promised like traditional life insurance.

Variable universal life insurance provides a death benefit to beneficiaries in exchange for premium payments that are made on behalf of an insured person, unlike traditional life insurance.

 The cash value is invested in what are essentially mutual funds and the cash value and death benefits of a VUL rise and fall with the market now, in theory, the long term the result is supposed to be a higher death benefit for the beneficiary as a result of investment performance in most cases.

However, because of Variable universal life insurance policy loaded up with so many fees, it's very difficult for these products to achieve a positive return in many cases that his the law firm has seen investors are asked to pay significant premiums upfront or over a course of several years.

They are also assured that the Variable universal life insurance will ultimately pay for itself once the cash value grows to a certain value this almost never works out as promised in his experience.

Instead after having dumped considerable amounts of money in the VUL most investors find the cash value does not achieve sufficient returns to pay the premiums.

The investors must be either deposit even more money into the policy above and beyond the stated premiums just to keep the policy afloat overtime more often than not the investor finds that the vul is simply unsustainable.

They often have no other choice but to surrender the policy at a loss, regulators have repeatedly warned brokerage firms and consumers about the many pitfalls of VUL and have disciplined brokerage firms and their salespeople for misrepresentations and unsuitable sales or else to their customers unfortunately though these problems still persist.

If someone is trying to sell you a variable universal life insurance policy I strongly encourage you to exercise extreme caution before putting any money into such a product.

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