Variable Life and Variable Universal Life
Chapters in this video
What this video covers
- How separate accounts and subaccounts link policy value to securities portfolio performance, and who bears the investment risk
- Why differently named subaccounts with identical holdings do not diversify risk, and how variable life differs from indexed life
- How scheduled premiums in variable whole life compare with flexible premiums and adjustable benefits in VUL
- Why poor performance, withdrawals, loans, and policy charges can increase lapse risk, and why flexible premiums do not eliminate deductions
- How to calculate an added premium by applying a market loss, subtracting policy deductions, then finding the gap to a target balance
- What a prospectus discloses, what it does not personalize, and why projected costs must use comparable amounts over the same period
- How illustrations and minimum death-benefit guarantees differ from promises of investment returns or positive cash-value performance
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