1. 429 POINTS
    Thomas Schaffer
    Financial Service Professional, New York Life Insurance, Raleigh,NC
    I believe it is just another name for Variable Universal Life. IN a Variable Universal Life product, you choose market investments to invest a portion of your premium payment to hopefully grow money tax deferred, and also have a death benefit. Of course it is a market investment, and there could be negative returns as well.The adjustable part means there is flexibility in the premium based on the value of the account.
    Answered on March 15, 2015
  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! In the spectrum of life insurance policies, there are policies that come with lower risk and higher guarantees, and there are those that may have higher values, but come with more risk and less guarantees.
    On the low risk end are traditional whole life policies. You pay a set premium for a specific face value, and as long as you pay your premiums, it's almost certain that you will see that face value paid when the insured passes.
    Moving up the spectrum a little are term policies. These policies also have set face value amounts, and cover only a specified amount of time. The payments may or may not remain constant. they might increase or decrease as the term nears completion. The only way these policies pay out is if the insured passes while the term period is still in effect.
    On the high risk end of the spectrum are the adjustable,variable, or universal policies.Though they may carry any of these terms in the name, the basic working chassis is the same. With these policies your risk to gain or lose is not guaranteed. You basically play the market within your policy with the funds that are in it. If your investments do well, then your policy may make money, remain solvent, and have steady premium payments for you. If the market isn't doing so hot, like lately, or your investment choices weren't the best, your policy may go belly up, or require higher premium payments from you to keep it solvent. The guarantees on this type of policy are generally minimal, and the balance of the risk is on you, not the insurer. They will have some pretty good looking numbers when trying to sell it to you, so if you are looking to purchase one of these, please be very sure that you understand exactly what you're offered, and what is guaranteed, okay?
    I appreciate you asking, and if you'd like more information, please don't hesitate to contact me, okay? I will go on record now as saying that I do not advise my clients to purchase this type of policy, unless they are completely comfortable with the possibility that they may lose money, or pay more than they might have wanted to. Thanks for asking!
    Answered on March 16, 2015
  3. 723 POINTS
    Everett Debrow, Jr.
    Principal Agent, Patriarch Associates,LLC, Opelika, Alabama
    Variable adjustable life insurance is an insurance product that gives the insured face value coverage while using a portion of cash values to invest in different stocks, money markets, or mutual funds in hopes of obtaining a profitable investment. This investment feature is a part of all variable products, making a stockbroker's license a requirement to market these products. In most cases, the investment profits are taxable.
    Answered on April 7, 2015
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