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
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