Variable Universal Life

Are you trying to balance competing savings goals? Maybe you’re looking for life insurance with flexible premiums. Or you might like the idea of a life insurance policy with an active investment component.

Whatever your priorities, you may want to consider a variable universal life policy. It’s permanent life insurance policy with a death benefit — but also has the potential to build contract value over time with the investment features you choose.

It’s designed to help you so you can protect your family’s future with life insurance — and at the same time gives you access to professionally managed investments. Protection and guarantees are subject to the claims paying ability of the issuing life insurance company.

Here are a few ways a variable universal life might be a good fit for you:
 

You want to provide for your family

Challenge:

Your family has large monthly expenses — everything from a mortgage to healthcare costs and tuition payments. You’d like the potential to leave them even more than your policy’s face value.

Possible Solution:

Variable universal life insurance products lets you invest a portion of your premiums in mutual fund-like sub accounts. This means you can utilize the investment returns to accumulate tax-advantaged contract value that can be part of or on top of the death benefit.


You’re looking for flexibility

Challenge:

You know how much life insurance you want — but you need to balance this priority with other savings goals.

Possible Solution:

Variable universal life insurance policies offer flexible premiums — and the ability to borrow cash value through policy loans or partial withdrawals. So you can access the policy for other goals like making a down payment on your first house or funding your daughter’s education.

Keep in mind, loans and partial withdrawals reduce the cash value and any benefit payable to your beneficiary. Also, if your policy lapses with an outstanding loan, it will be treated as a distribution and some or all of the amount may be taxable.


You don’t get enough coverage from work

Challenge:

Your company offers life insurance as part of your compensation package, but coverage is limited and you can’t take it to another job you’ve been offered.

Possible Solution:

With variable universal life insurance, you choose how much coverage you want — and it’s permanent insurance that remains in force as long as sufficient premiums are paid.


Farmers can help you make sense of your variable universal life insurance options

Variable universal life policies can be complex, and it’s important to understand how they work before you invest. Your Farmers Insurance and Financial Services Agent can help so you can understand your options, and provide information about risks, fees and any tax implications.

Contact a Farmers Insurance and Financial Services Agent in your area today.

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Purchasers of variable insurance policies should consider investment objectives, risks, charges and expense of the underlying investment options of the variable insurance policies carefully before investing or purchasing. Variable insurance products are subject to insurance related charges and fees. Performance of variable insurance policies will also be affected by annual mortality and administrative expenses and is subject to a declining deferred surrender charge. The prospectus contains this and other important information. Please contact your Farmers Insurance and Financial Services Agent for the prospectus and read it carefully before purchasing.