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The process of canceling a whole life or universal life insurance policy is very similar to canceling a term life policy stop paying premiums or notify the carrier. However, when canceling these types of policies, your insurer may offer you several nonforfeiture options.
You can also withdraw funds or borrow against the cash value. Another feature of VUL insurance is that you can increase or decrease the policys death benefit to match your current coverage needs, within certain parameters. This means your premium payment can be adjusted up or down as well.
A VUL might not be right for someone who is uncomfortable with market risk, as the policy cash value could fluctuate based on the performance of the underlying investment options they choose, said Jason Handal, vice president of risk products at Northwestern Mutual.
A variable universal life insurance policy (or VUL) offers permanent protection, flexible premiums, and the potential for greater cash value growth because it lets you invest in stocks, bonds, and other securities via subaccounts.
One of the major downsides to variable universal life insurance is that your cash value can decrease if the underlying investments underperform. You could lose previous gains as well as your initial investment. VUL death benefits are generally not guaranteed.
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People also ask

Variable universal life (VUL) insurance is a form of permanent life insurance. It combines the main benefit of life insurancea financial payout to your loved ones when you diewith investment subaccounts. These investment subaccounts can be used to invest the cash value of your policy.
Is variable universal life insurance a good investment? VUL isnt a good investment for most people. It comes with fees and complexity at a high price that isnt worth the investment returns. Most people will save more by using a traditional investment account and buying term life insurance.
How do I surrender my VUL policy and what is the impact? If you are the owner of the policy you can call the number on your latest correspondence to request a surrender form. If you decide to surrender your policy: Your policy will have no further value and no death benefit after that date.

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