Variable Universal Life Insurance Vs Universal Life Insurance

If you have decided on permanent life insurance, you might be considering choosing between variable universal life insurance and universal life insurance. Here is what you need to know about these two types of permanent life insurance.

Cash value

Both universal life insurance and variable universal life insurance allows you to build up cash value in your policy. Also, you are free to invest the cash value of these two life insurance policies in your preferred investment portfolio. However, unlike universal life insurance that gives your cash value a fixed interest rate, variable universal life insurance offers you the chance to earn higher rates depending on market forces. This is one reason why your variable universal life insurance can easily gain or lose value since it is based on the happenings in the investment market. Besides, if you earn a high enough interest, you could stop paying premium on your variable universal life insurance policy. Doing this will not affect your variable universal life policy as it will remain valid for the duration of your life.  In addition, your policy will still keep earning money.


Like universal life insurance, variable universal life insurance has a flexible premium repayment plan. In other words, your premium is not set at a specific amount. You have the option of setting the amount of your premiums to suit your budget, if you wish. You can even choose the times you want to pay your premiums. For instance, some life insurance companies allow you to pay your premiums either at once or monthly till age 65. However, these conditions are only allowed within a limit defined by your life insurance company. We therefore advise that you contact us before taking this step.