Explain which type of life insurance (Term, Universal, Variable Universal, or Whole Life) you would purchase...

Explain which type of life insurance (Term, Universal, Variable Universal, or Whole Life) you would purchase in the future.

(just pick any i have no preference)

Expert Solution

I will be buying variable universal life insurance because it will help in in building saving component that will allow for investment of cash values and it is a type of permanent life insurance policy as well.

the premium in variable life insurance policies is flexible in nature and they will typically have a maximum cap and minimum floor on the investment return associated with the saving component.

Variable universal life insurance has investment subaccount which will allow the investment of cash value and sub accounts function is similar to that of a mutual fund which will be having exposure to market fluctuations and which can even generate a higher rate of return.

the growth of variable universal life insurance policy cash value is tax deferred, so policyholder may access their cash value by taking a withdrawal or borrowing funds hence I will be trying to go with variable universal life insurance policy.

jeff jeffy answered 2 years ago

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