Question: I am helping out in our small family business and I want to know how I can utilize insurance products such as VULs or Variable Universal Life Insurance? (asked at my Facebook page)
Answer: Thanks for your question. VULs are basically life insurance products with an investment component. The investment aspect works similar to how pooled funds are invested (mutual funds/UITFs). As with any investment, past performance does not guarantee future results. There are many different types of policies to consider, at different price levels, which are beyond the scope of this article.
VULs are flexible and versatile enough to be used not just for your own family but also for business and wealth planning; these can also have higher premiums compared to traditional insurance.
The reason for buying life insurance, of course, is to protect your family. When the insured dies, the death benefit (and the accumulated cash value) can help the family in many ways:
* (When still building it) Forced Savings Plan and Future Retirement income
* Fund the education of children (withdrawals or after death)
Originally Published in Philstar - The Freeman Newspaper last August 9, 2016.