Most people are familiar with the whole life and term life insurance plans. What they may not realize is there are other options for life coverage on the market. One that’s worth looking at closely is known as variable universal Life Insurance in Murrieta CA. Here is some information that will make it easier to decide if this type of plan is right for the individual.
Understanding the Essentials
A variable universal life plan does fall into the category of coverage that is considered to be cash value insurance. That is, the plan does serve as an asset that comes with a current market value. Just like any whole life plan, that cash value can be used as security for a loan. This kind of Life Insurance in Murrieta CA will also pay a benefit of the designated beneficiary when the covered party passes away.
One aspect of this type of insurance is that it does have an investment component. The value of the policy is directly related to the types of investments secured with the funds applied to the insurance plan. This provides the potential for generating more returns and being able to provide more security for loved ones if death should come unexpectedly.
Are the Investments Fixed?
In a sense, securing this type of policy allows the covered party to be highly selective about the types of investments used to generate the value of the plan. Those who tend to be more conservative and would prefer to go with investments that provide steady but less spectacular returns can do so. Individuals who are willing to assume more risk can choose investments that could yield more returns but are considered to be somewhat volatile.
The investments chosen early on can be updated from time to time. That means if the individual would like to make changes to the types of investments or include a mix of investments ranging from the secure to the more speculative, that is possible. With the help of an expert, there’s always the opportunity to review the current round of investments and decide if a change is in order.
Contact the team at Barranca Insurance Services Inc. today and ask for more information about variable universal life insurance. Make sure to ask how this arrangement could benefit loved ones and also ease the tax burden they would incur. This approach could be just what the client wants.
