What is FLEXIBLE PREMIUM VARIABLE?

"VUL" as some call them.
(2nd-To-Die Life Insurance)  

Life insurance is often used to provide the CASH to pay Federal Inheritance Estate taxes, in lieu of selling 

assets within an estate to generate the CASH. Today couples can have ONE policy. A 2nd-to-die life or 

joint-and-survivorship Policy. In other words the policy pays the death benefit on the death of the LAST 

person to die. There are several major benefits to this type insurance:

·        The premiums are less because the insurance company will only pay out the death benefit once.

·         One of the two spouses can actually be UN-INSURABLE!

·         There is no need for a second policy because people who often need this type of insurance do 

not really need the CASH on the death of the first person to die, since there are no Federal Estate 

Inheritance taxes due on the death of the first person.

The word VARIABLE is used to distinguish these types of policies because:

These policies have SECURITIES inside them as your investment choices. They are just like any other 

Variable Life Insurance policy which offers sub-account investment choices. The fund choices are 

managed by the same Fund managers as the retail public versions and the stocks invested in the funds 

are the same as the retail versions. These funds are not the same funds but work similar to the retail 

version. The difference being is they are only available through that particular life insurance policy. The 

sub-account fund choices inside Flexible Premium Variable 2nd-to-die Life Insurance policies are some 

of the best fund choices available anywhere. The insurance companies who put these types of polices 

together understand they are dealing with savy investors and know they must offer them quality fund

managers and a variety of fund choices, in order to earn their business.

      The word FLEXIBLE is used to describe that fact that the premiums paid from year to year can be

      flexible. The premiums can be changed, varied, up or down, by YOU the policy owner.

SINGLE PREMIUM POLICIES!

The above type of policy is also offered as a SINGLE PREMIUM policy as well. Instead of paying individual 

premiums year after year, you can pay it all at once. One lump some. One payment. One deposit. This is a 

VERY COMMON practice especially when using this type of policy for Estate Planning. Once people realize 

it is more effective to use life insurance dollars to pay Inheritance Taxes, as opposed to their own cash or assets, 

this often becomes a very desirable alternative.

Also available is a life insurance plan called a Universal Life (UL) program, which does NOT have any

sub-account investments. This type of plan is also available from some companies as a Joint-and-Survivorship,

Second-to-die type of policy. Some companies even offer it as a Single Premium plan. These UL policies

often require a smaller premium and may work better for some than the VUL Variable type of plans.        

Got a Question?   

NOTE: For Variable Life plans-Investment return and principal value will fluctuate, and shares, when 

redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future 

results.  Dollar Cost Averaging does not assure a profit nor does it protect against loss in declining markets. 

The above reference is NOT an offer to sell a product. Obtain and Read the Prospectus carefully before

making your final decisions.