Monthly Archives: April 2015

Variable Universal Life Insurance: The Cash in Your Life

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Variable universal life insurance (or VUL) is a form of life insurance that holds a cash value that is to be spent towards several different accounts—distinct from other types of insurance because of the access to a “death benefit” and the option of investment. VUL is primarily known for its “variety” in allowing the user to invest in separate accounts with different values, such as different stock and bond markets, as well as its “universality” for being flexible to all users and allowing different payment schedules, as opposed to most insurance policies that have a strict payment policy. In addition, it is a permanent life insurance, which is where the death benefit comes in: the user’s pension is still paid as long as there is enough cash value to pay all other costs.

As implied above, variable universal life insurance is a complex policy, with many possibilities. Firstly, the number of accounts available and the type of choices to invest in vary in the different VUL policies. Payment schedules are also subject to flexibility of the user and the offering company. The separate accounts with different investments are kept separate from the overall life insuring policy, and are similar to “mutual funds”—an investment program dealing with a variety of professional holdings. A majority of VUL policies label the insured as the manager of their investments rather than the company, and so there is both a larger risk and/or potential return.

Advantages

There are multiple of advantages in engaging with variable universal life insurance:

  • Greater market growth: the user’s value is invested in multiple accounts that are all vulnerable to market growth or decline.
  • With VUL, the accounts are flexible enough to be adjusted to fit the trend of growth
  • Those with VUL have the advantage of First In, First Out withdrawal
  • Tax advantages: VUL’s returns, such as in death benefits or policy loans, are income tax free. Similarly, it is tax deferrable, making it highly attractive to those in the highest tax brackets
  • Future planning: the cash value that comes from a VUL is often put towards an education or a retirement fund

Disadvantages

In addition however, there are also larger risks that come along with more intensive advantages:

  • By engaging in investment with your insurance policy, the responsibility of the investment is on the user, rather than the insurance company
  • Although the insurance policy is flexible to be adjusted, there will usually be a cost of change
  • Administrative hassle, as VUL involves a lot of understanding and planning
  • High costs: the cash needed in the first place to use VUL successfully is much higher than in other insurance options

Visitor Health Insurance: Choosing the Right Coverage

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Visitor health insurance is a medical coverage that allows non-permanent travelers in a foreign country to obtain protection in the case that they fall ill to sickness or injury during their stay in that host country. This type of medical insurance is a short-term plan, and also accounts for instances of evacuation and repatriation if necessary. In the United States, most visitors are not required to have purchased visitor health insurance. However, those from the European Schengen area, such as Austria, Belgium, and the Czech Republic, are required to show proof of this insurance in order to become eligible for a visitor visa later.

Varieties:

There are several types of visitor health insurance that fall under different Preferred Provider Organization Networks (PPO) networks. For example, those who want coverage for a short span of time may choose to purchase Patriot America’s Insurance, while visitors looking for an economical choice may choose Visitors Care. Similarly, there are different options for short-term, long-term and indefinite lengths of time; coverage that allows exclusive U.S. treatment; domestic or international; group or individual; student or full-time worker, and the extent of coverage, ranging from dental and vision to full body insurance.

Advantages:

While there are types of health insurance for people both inside and outside the United States, the more popular choice has been to purchase insurance from the U.S. — and for good reason too. The United States offers insurance with the most coverage, with an additional list of advantages:

  • Easy access to your own information, such as claim address, ID number, PPO network, etc.
  • No medical exam, excessive paperwork, or membership is required
  • Plans are refundable and renewable. Renewability is a helpful option if the span of time outside a visitor’s host country is unknown, while refunds are an option for those who decide to leave early
  • Quick and easy quotes and purchase options
  • The majority of U.S. based insurance companies are part of the Better Business Bureau (BBB) which is a guaranteed option in the case of any disputes
  • Thorough examinations of insurance offices by the U.S. government ensure the abidance to regulation

Ultimately, the type of visitor health insurance you choose is dependent on a number of factors: size of your group, your income level, your citizen status, and the duration of your stay.