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Originally posted by clues_blues
what is a VUL? i know it is a mix of life ins. and retirement, but are there a few words you could say to a layman?
c_B
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It stands for "Variable Universal Life." An insurance salesman might know more about it than I do, but essentially what it does is allows you to turn a life insurance policy into an investment vehicle. You can allocate the funds you place in the policy however you want. Basically, like any insurance policy, the "value" of the policy upon your death is variable. However you can invest this value rather than letting it sit unused. It acts like any other investment account, except there are some restrictions on withdrawals and there is no income tax paid on it once you die. Again, this isn't an area where I'm particularly expert-- I avoid life insurance salesmen like the plague.
Bob