Future Planning Tool

A Multipurpose Future Planning Tool
September 20, 2007 | By John Wallick II, CFP®

Most legal and financial products are designed to meet one specific need, but where does that leave you if you need more than that?

Equities are typically purchased by those who desire to grow their investment assets. Fixed-income securities are purchased by investors who have current income as their primary investment goal. Annuities may be attractive to individuals who wish to generate tax-deferred capital appreciation, or to consumers who need a vehicle from which to take asset distributions. Wills and trusts are often drafted to aid in the settlement of estates. And finally, life insurance is generally purchased by those who have a need to protect their assets or for those whose premature death - i.e., a primary wage earner - would result in loved ones enduring financial hardship.

However, atypical to the products noted above, variable universal life (VUL) policies may enable policy owners to enjoy not just one, but multiple, benefits. Rather than simply taking advantage of the asset-protection features of life insurance, policy owners can gain from the tax-deferred capital appreciation and estate-planning aspects of the policy. Read on to learn the many benefits of VUL policies.

All-In-One Features of VUL
Variable universal life insurance has all of the same standard features as other cash-value life insurance policies. It has a policy owner, insured person, death benefit, beneficiary, premium, cash value, loan and withdrawal provisions, and more.