Variable Universal Life Insurance Policy

Variable Universal Life Insurance Policy

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Variable Universal Life Insurance Policy

Variable Universal Life Insurance Policy definition:  A variable universal life insurance policy pays beneficiaries an adjustable amount when the owner dies. The policy provides coverage for the owner’s entire life (also known as permanent coverage) and does not need to be renewed. Similar to a tax-deferred investment, the policy’s value increases over time, and the earnings are only taxed when distributions are made. Variable policies are similar to whole life policies, with the exception that death benefits and investment values are adjustable depending on investment performance. The policy owner chooses among equities, bonds, mutual funds, and money markets for the investment component (rather than interest-bearing cash with traditional whole life). A variable universal policy gives maximum flexibility to change premiums, death benefits, and investment options depending on the owner’s insurance needs. Beneficiaries are not taxed on their proceeds from a death benefit. However, life insurance policies may be included in the taxable estate depending on how they are structured.  The earnings from a variable life policy can be used to pay premiums but cannot be withdrawn during the policy owner’s lifetime.

Download our free Family Office Report to learn more about the family office industry.

Read more Family Office Definitions

Tags: What is variable universal life insurance policy?, variable universal life insurance policy definition, variable universal life insurance policy family office, variable universal life insurance policy term, define variable universal life insurance policy, variable universal life insurance policy wealth management, variable universal life insurance policy multi-family office, variable universal life insurance policy single family office

Leave Your Response

* Name, Email, Comment are Required

We run the Family Offices Group, the #1 largest family office association with 84,000+ global members. We offer live events, a bestselling book, Webinars, a family office database, and a family office training & certificate program called the Qualified Family Office Professional (QFOP). To get to know us please watch this 2 minute video, and contact us any time during pacific business hours by calling (212) 729-5067 or emailing us at Clients@FamilyOfficesGroup.com.

Free Family Office Report (PDF)

Contact Details for 1,000 Family Offices in Excel