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2012-05-29 01:03:09
2012-05-29 01:03:09

Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.

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There are two main categories of life insurance: whole life and term insurance. Whole life insurance is an insurance policy combined with an investment account and has several variations such as universal life and variable life. Term life insurance has no investment account, but provides a set sum of money should one die within the specified term of coverage. Variations of term life insurance include annuable-renewable and level-term policies.


Variable universal life insurance combines the flexibility of a universal life insurance with the investment account features of a variable life insurance.Like variable life insurance, variable universal is considered a security. It can only be sold by agents who have passed the National Association of Securities Dealers (NASD) exam.AnswerVariable life insurance allows you to control your portfolio of investments that is part of the cash value component of a whole life insurance policy. This could include stocks, bonds, or funds. As a result of this freedom, this is the most expensive type of insurance available in the market. Opt for such a policy only if you are completely confident about investing in the markets. While the risks may obviously be higher as there is no guarantee on your savings, the value benefits are also much more than any other insurance policy available.AnswerVariable Universal Life insurance is permanent life insurance that has a cash value feature in it. The cash value is invested in a small selection of portfolios. Since it is invested, there is no guarantee interest and it may lose value. When you pay your premiums, you are paying for three things: The insurance, the cash value, and investment fees. If you know anything about mutual funds, mutual funds have their own annual operating expenses. Since these mutual funds are invested in a life insurance policy, you are paying more than 5% of annual expenses. Therefore, you will get a low rate of return on your cash value.Every year, the cost of the insurance goes up. The insurance part of the policy is annual renewable term. That means more of your premiums is going to the insurance and less toward the cash value. Eventually, you will have to pay higher premiums in the future. If you don't, the policy will eventually lapse as the cash value is depleted.


No, it is a real/permanent account. Insurance expense is a nominal account.


Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited


Universal life insurance is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any. read more at <A HREF="http://www.lemonshell.com/wealth/lifeinsurance.aspx"> www.lemonshell.com/wealth/lifeinsurance </A


Variable life insurance differs from whole life insurance and universal life insurance in that policy owners direct the distribution of their premium payments among several different accounts or funds rather than of the company's choosing. Typical account choices are: common stock, bond, mortgage, and money-market accounts. With a variable policy, the death benefit and cash value benefits vary in relation to the value of the investments underlying the policy. If the value of the accounts increases, so will the benefits; if the value of the account decreases, so will the benefits, subject to a minimum guarantee. Variable life insurance is more risky to the policy owner than the other forms of cash value insurance, but there is a possibility of greater returns. In fact, variable life insurance is so much like "normal" investing that agents offering it must be licensed securities dealers and registered with the U.S. Securities and Exchange Commission. For Insurance � a free service that connects consumers with insurance agents and policies � recommends that variable and variable-universal policies are most suitable suitable for long term obligations and those who are more active investors and for estate growth and death tax liquidity. In Response to Chris' prior response. "Variable" means it is not a fixed account, but in subaccounts directed according to the policy owner's wishes. These subaccount include, but not always, popular funds like the ones offered by Fidelity Investment. They all have there field of investments. Some are Blue Chip stock funds, Over-seas funds and even more simple Government Bond funds. Money Market is a choice. The choices can be endless and the owner picks % of the net premium paid after expense to go to each Sub-Account. Your Death Benefit will stay the same if you choose the Level Death Benefit option. Your benfit will be payable as long as premiums are paid and there are funds in the accumulation account connected to the subaccounts. You can also choose an Increasing Death benefit that includes the Face ammoun, the amount of insurance on your life, plus the value of your funds. You have choices but get a good agent licensed to sell Variable Contracts. he will need his Series 6 and usually series 63 securties license.


Some disadvantages of Variable Annunity Insurance are a ten percent penalty from the IRS if you withdraw any funds before the age of sixty as well as another penalty if you withdraw over the amount of your yearly allotment. The account also incurs a management fee every year.


No till the time it get's converted into account balance and usually ledger balance get converted into account balance with in one day


Are you sure you didn't permit your insurance company to bill your account directly when you bought the insurance? This is becoming a very common thing. If you didn't, you'd have to ask how the insurance got your account information to get the funds.


Yes. Having a bank account is not a prerequisite for obtaining auto insurance coverage.


Prepaid insurance is personal nature of account and amount in it is shown as current asset in balance sheet.


You can create an account with CAA Insurance on their website. You should see on the top left Create An Account and fill in your information and you should be set to go.


Mortality deductions Within a universal life insurance policy, the amount deducted from the account value each month to pay for the pure cost of mortality (risk of death) under the contract.


Account impounding is an accounting term used to describe an account that is maintained by a mortgage company. This account collects hazard insurance, property taxes, private mortgage insurance, and other required payments.


To get insurance from Churchill Insurance you must make an appointment with a representative and make an account. They will give you forms to fill out for the car insurance.


Escrow account is used to pay the taxes and insurance of the property


There are many benefits of taking out a health insurance savings account as compared to purchasing ordinary health insurance. One of the best benefits is the possibility of interest growth in the savings account as well as not having to purchase it all at once.


Actually, the home owner pays the home owner's insurance. The lender has an escrow account. This is in additional to the payment of interest and repayment of principal. The escrow account pays the taxes and insurance. The escrow account pays the taxes so the government does not seize the property. The homeowners insurance pays in case the house burns down. So, you pay into the escrow account, and if your house burns down, the lender gets the insurance money. You would not pay a mortgage on a burned down house and the bank knows that, so they have you pay into the escrow account and they pay for the insurance.


Prudential life insurance does have a website. It allows you to obtain insurance quotes, manage an existing account or find a Prudential insurance agent.


A variable interest rate on a current bank account would imply that the interest rate fluctuates over time. Market conditions will determine the value of the interest earned.


No, cash + cash equivalents is the most liquid account. Liquidity is how quickly an asset can be converted to cash.


The Unknown variable.You design an experiment so to account for all variables except for one. That one is the measure of the result of the experiment.


In your Income and Expenditure Account, show the Health Insurance premium paid by you as expenses and claim income tax rebate as permissible in Income Tax Act of your country.


You can apply for Homesite Insurance online at the website. You will need to login to get a quote and manage your account, which includes applying for Homesite Insurance.


The best way to get an estimate on house insurance would be to go to your choice of insurance companies. Then you have to start an account there, and they will come out and assess your house.



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