It seems there might be a bit of a mix-up in terminology. “Variable Survivorship Universal Life Insurance” appears to combine elements from different types of life insurance policies. Let me break down these terms for clarity:
Survivorship Universal Life Insurance (SUL):
Survivorship Universal Life Insurance is a type of permanent life insurance that covers two individuals (usually spouses) under a single policy.
The death benefit is paid out only after the death of the second insured person. This type of policy is often used for estate planning or to provide financial support for heirs.
Variable Life Insurance:
Variable Life Insurance is a type of permanent life insurance that has a cash value component. The policyholder can allocate the cash value among various investment options, typically mutual funds.
The cash value and death benefit can fluctuate based on the performance of the chosen investments. This introduces an element of risk and reward.
Combining these concepts, “Variable Survivorship Universal Life Insurance” could imply a policy that:
Covers two individuals (survivorship aspect).
Is a universal life insurance policy, providing flexibility in premium payments and death benefits.
Includes a variable component, allowing the policyholder to invest the cash value in various investment options.
It’s worth noting that the specific terms and features of insurance products can vary among different insurance companies. If you’re considering such a policy, it’s crucial to carefully review the terms, conditions, fees, and investment options associated with it. Consulting with a financial advisor or insurance professional who can provide personalized advice based on your financial goals and needs is recommended.