Almost all people, given the opportunity, would desire to have some kind of life insurance policy under their names; however, not all of them get the best deal when it comes to a very beneficial life insurance. The Variable Universal Life Insurance or VUL stands out among the rest, because it’s a fusion between stock market investment and a universal life insurance policy amalgamated into one! Isn’t that amazing?! You’ll have stifled life insurance and you also have the option to expand your life savings as well as put some of your premiums into investment options in the stock market. The benefits are just too nice to ignore.
How does it work?
The Variable Universal Life Insurance (VUL) policy allows you to pay more than their required premiums; this is done so that you can use the added cash in other endeavors like putting the extra amount in your savings account and investing that money in tax-deferred investment or a mutual fund, etc. Over the years the compounding interests on those investments will significantly increase your savings account, thereby giving you the option to retire early and even start your own small business enterprise. You can even pay your monthly premiums using money from your savings account until you have completed the required number of years of contributions.
What are the benefits of getting a VUL?
Having now known that a Variable Universal Life Insurance has a triple benefit scheme that includes a life insurance policy, an investment portfolio and a retirement plan; the benefits of buying one is staggering to say the least! Here are some of the benefits of having a VUL
As a life insurance policy
• A onetime lump sum amount
• A monthly remittance
• Health care benefits
• Death and funeral benefits
As an investment portfolio
• All income from your investment portfolio are tax deferred
• Incrementing savings account
• Alternate source of income
• Financial stability
As a retirement plan
• Overseas retirement option
• Great travel plans
• Amazing vacation holidays
• Financial freedom
The benefits you’ll get is beyond obvious and any smart person would definitely look into this and consider it deeply. Some may say that the amount of money you’ll put into this kind of insurance policy is a bit risky, but it is only to those who cannot grasp the concept of the whole process of how this works.
Is it a huge potential for a retirement plan?
Absolutely! Like I have laid out the benefits above, you have the option to use the money from your savings account any way you please. That includes retiring in the Caribbean or Mediterranean which are popular choices for retirees. With over tens of thousands of dollars in returns, you’ll have enough money to get you through the rest of your life. On top of that you’ll have a monthly income and a health benefit as a precaution in case you’ll have health problems. Is there anything else I’ve missed? Think about it! It’s all worth the risk and investment.