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What is the difference between a variable whole life policy and a universal whole life policy?

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2005-12-08 05:00:01
2005-12-08 05:00:01

Variable plays the market like a Mutual fund. And universal life sits still and gains interest without the market investment.

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The primary difference is how the cash value is invested. Variable universal life means it is invested in stocks and mutual funds and a "fixed" universal life is usually dependent on interest rates. Both carry high risk, but a fixed universal life policy gives you a guarantee that it will not go below a certain interest rate, while variable universal policies usually do not.


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.


the interest rate is stipulated in writing in the life insurance policy


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the basic difference between policy and guideline is the policy is rules for whole org. and guideline is rule for execution of some work.


Yes, there is difference between policy and practice. A policy is rules, regulations and procedures that you should follow within a practice.


A term life insurance policy is a basic protection that covers expenses in case of an accidental death, it will sometimes cover debilitating injuries, but only briefly. A universal insurance policy covers a wider category and can sometimes be cashed in.


Policy statement is what you say you are going to do. Policy is what you do, which should be in line with the policy statement.



Policy means what you should do, rules are what you mustdo


Without knowing your circumstances, wants, needs and desires - the question can't be answered. I would suggest that you get proposals for both and then make a decesion. I agree with the previous person's answer. Generally speaking, Variable has a higher upside potential but no minimum floor. Universal Life has a guaranteed floor, but a smaller upside potential. A variable universal life policy is more subject to market risks. The policy holder is allowed to monitor a portion of the premium and direct it to stocks and bonds of his choice, within the company limits. If you have a confident understanding of stocks and bonds this may be a policy for you to consider. For more information please refer to Types of Life Insurance.


Universal Life insurance has variable premiums built into the policy (whether traditional Universal Life or Variable Universal Life). However, many people end up paying less than they need to and the policies don't work out the way they planned. If you do a Universal Life policy, make sure you have a trustworthy agent. As for variable face amounts, some term policies have built in options to enable increasing the face amount of the policy at certain points in time. This may also be an optional rider on some policies, but there is a cost to it. This can be a good idea if budget doesn't allow for the appropriate face amount. Often insurance companies will allow you to reduce the face amount of a policy and get a reduced premium. Permanent insurance (Whole Life and Universal Life) have variable face amounts based on dividends and interest that may add to the face amount over time. Feel free to ask more. Brian Lombardo, CPA, Agent




"Paid up" is actually the terminology used in the insurance industry when describing a policy that no longer requires any premiums. When a policy is "paid up", there are no further premiums required for the policy to continue on for what should be lifetime. This can only occur with permanent forms of Life insurance such as Whole Life, Universal Life and Variable Universal Life.


Politics is usually people from the government. Policy is an written contract.


Explain the government taxing and spending decision


The difference between a passive and an active dividend policy lies in the amount of time between dividend disbursement. In a passive dividend policy, dividends are given when the company decides it is time. With an active dividend policy, dividends are disbursed at regular intervals.


diffrent btw decition making and policy making


Term insurance does not build any cash value until it is converted into a type of permanent product that does - whole life, indexed universal life, current assumption, variable universal life.


the policy contains many permissions


There is one main difference between rules and policies. A policy sets a standard for how things should go. A rule is a steadfast policy that cannot be bent for any reason.


Policy is a course of action and procedure is a particular course proceeding any action


A policy is a general attitude, where as a decision is on the basis of a particular issue. -------------------- Yes for instance you could decide not to follow the policy.



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