What are the pros and cons of a Variable Universal Life Insurance policy for young investors?

I am 24 years old and I was introduced to a Variable Universal Life Insurance policy by a financial advisor. He explained some of the pros and I researched some of the cons. Some articles recommend "buy term, invest the difference," while others note the value of combining life insurance with a cash component. I'm skeptical because I've never heard of a VUL, and I'm having trouble understanding why I would choose this over a more traditional investment vehicle. What are some advantages and disadvantages of a VUL for young investors and how do they compare to other investment vehicles?

Investing, Life Insurance
Sort By:
Most Helpful
July 2017

Soundsl like you are not dealing with a Fiduciary Financial Advisor, and most likely an insurance salesman.  There may be a placen in your financial plan for a VUL once you have maxed out your other tax favored accounts like an IRA, ROTH IRA, or 401k.

To give you a better insight into the benefits of what I all the "RICH PEOPLE ROTH" give this post a read....but from you question and age I'm guessing it wouldn't quite the right time to start this type of plan.

Rich People ROTH – For those with too much Income.

A VUL would only really make sense if you actually need the underlying life Insurance.  If you don't put this type of plan off until you've maxed out your other available options.


Live for Today, Plan for Tomorrow.


DAVID RAE, CFP®, AIF® is a retirement planning specialist with DRM Wealth Management. He has been helping people reach their financial goals for over a decade. He is a regular contributor to the Advocate Magazine as well as Huffington Post, and is an on demand Financial Expert  on TV and Radio.   For more information visit his website at www.davidraefp.com or the Financial Planner LA blog.


April 2017
April 2017
April 2017
April 2017