Stockbroker Law - Friday, May 10, 2013
Hidden Costs Associated with Variable Universal Life (VUL) Insurance Policies

The various costs associated with variable annuity policies includes surrender charges and fluctuating costs of insurance charges, all of which means that the underlying cash values of the Variable Universal Life policy must work that much harder in order to maintain (and pay for) the life insurance benefit provided by the policy.  Other monthly deductions from a Variable Universal Life insurance policy include various face amount charges, administrative charges, and separate line-item charges associated with various benefits. 


Life insurance companies may increase various VUL policy loads, charges, and rates, and in certain instances this in turn can have the affect of consuming the cash value surrendered from a paid-up, guaranteed whole life insurance policy over a period of years, particularly during the time frame of poor stock market performance. 


Insurance companies also reserve the right to lapse (cancel) a policy in circumstances wherein the cash surrender value can no longer support applicable charges, fees, and costs, including surrender charges, to keep the policy in effect. 


Many investors have been talked into converting a paid-up, guaranteed whole life insurance policy to a Variable Universal Life insurance policy, only to see the entire value of the VUL policy consumed by various costs, charges, and surrender fees.


We offer a free consultation to investors who feel they have been victimized with the sale of Variable Universal Life insurance policies, based upon the recommendation of the representation of an existing whole life insurance policy.


The Law Offices of Timothy J. O’Connor is one of the only law firms practicing securities law in the Tri-City Capital District of Albany, Schenectady and Troy.  We also represent victimized investors throughout the rest of New York State, including Buffalo, Binghamton, Syracuse, Watertown, Utica, Kingston, New York City/Manhattan, Long Island, and everywhere in between, as well as in the surrounding states of Massachusetts, Vermont, New Hampshire, Connecticut, and New Jersey.


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