By
eHow Personal Finance Editor
Difficulty: Moderately Easy
Things You’ll Need:
Step1
Make sure you are the kind of person who can be comfortable with the ups and downs of market fluctuations. "Variable" means the returns of invested cash values and the death benefit they support are not guaranteed, and "universal" means the policy has a high level of flexibility.
Step2
Go through the appropriate steps to determine if you need life insurance and, if you do, how much you need.
Step3
Get recommendations from trusted friends regarding the choice of a qualified and experienced life insurance agent.
Step4
Interview the insurance agent to make sure he or she is knowledgeable about variable insurance contracts and capable of shopping the market for you.
Step5
Choose an insurance company that has consistently received high ratings from major rating services, such as AM Best, Standard & Poors, Moody's and Duff & Phelps.
Step6
Take the time to study the prospectus your agent gives you and pay close attention to the investment goals of the available funds and their respective management fees (which will be deducted from your cash values).
Step7
After being successfully underwritten, allocate your premium payments and cash values in the policy's "separate account" according to your risk tolerance and general investment objectives.
Step8
Apply the same, sound investment practices with your cash values as you would other types of equity accounts.
Comments
choicearizona said
on 2/8/2008 http://www.arizonaautohomelifeinsurance.com/builderarizonacc/Tucson/index.php
I'm not as sold on VUL as I once was. As I get older I realized there is value to having a life policy without risk. That is why a whole life or some types of UL's are so much better.