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Variable Universal Life Insurance, commonly referred to as
VUL, is a versatile product which provides both insurance protection and
investment components. Variable Universal Life Insurance, like Universal Life
Insurance, allows you the freedom to choose the amount and timing of your
premiums, subject to company minimums and IRS maximums. Likewise, you may
increase or decrease the death benefit, depending on policy minimums and any
underwriting requirements.
However, the feature that distinguishes a VUL policy from a Universal
Life policy is the availability of various investment fund options. Universal
Life policies offer only fixed rates of return where as a VUL policy provides
possibilities for higher returns due to the investment component within the
product. In fact, the gains you make on the investments may not only help cover
the cost of the insurance component of the product, but help build a fund for
your retirement or other cash accumulation needs.
Available investment funds can range from money market
funds to stock and bond funds depending on the insurance provider. The cash
value of the policy is directly related to the performance of the funds that
you've selected. It should be noted that the cash value can potentially fall to
zero if the investment funds perform unfavorably, and the cost of the insurance
protection component is deducted from the cash value of the policy.
Although the investment risk of a VUL policy is
shouldered by the policy owner, the flexibility and wide range of options,
coupled with the rewards of selecting solid investments with the potential for
favorable returns, make Variable Universal Life policies very appealing to many
individuals.
Variable Universal Life policies are offered by
prospectus only. Prospectuses contain more complete information on management
fees, charges, and other expenses and should be read carefully before investing
or sending money.
For more information, contact a MEMBERS Financial Services Representative serving Alliant Credit Union for a no cost, no obligation consultation.
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Last Updated 05/01/2010
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Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (800) 369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. The Representative may also be a credit union employee that accepts deposits on behalf of the financial institution.
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©1997-2010 CUNA Mutual Group.
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