VUL Education
Benefits and considerations, side by side
Pacific Select Harbor VUL offers lifelong protection, long-term growth potential and living benefits. Here is each advantage beside the trade-off that comes with it, so you can decide with confidence.
Weigh it honestly
Potential benefits and what to consider
Use this table as a starting point for your personal consultation.
| Feature | Potential benefit | What to consider |
|---|---|---|
| Lifetime protection | Coverage designed to last your whole life, not a set term. | Coverage continues only while there is enough cash value to pay policy charges. Underfunding can cause a lapse. |
| Growth potential | Cash value can participate in market growth through the subaccounts you choose. | There is no guaranteed return on variable subaccounts. Cash value can decline, including loss of principal. |
| Tax treatment | Cash value generally grows tax-deferred, and death benefits are generally income-tax-free to beneficiaries. | Tax treatment depends on current law and how the policy is funded and used. Overfunding can create a modified endowment contract (MEC). |
| Access to cash value | Policy loans and withdrawals can provide access to cash value. | Loans accrue interest. Loans and withdrawals reduce cash value and the death benefit, and may cause lapse or taxes. |
| Premium flexibility | Pay more in strong years and less in tight years, within policy limits. | Lower payments can mean less cash value and a higher risk the policy will need more funding later. |
| Investment control | You decide how cash value is allocated and can reallocate over time. | You carry the investment risk and are responsible for monitoring the allocation. |
| Costs | Charges pay for insurance protection, administration and investment management. | VUL charges are generally higher than term insurance and can be significant in early years. Surrender charges may apply. |
Alternatives
When something else may fit better
A VUL is one tool among many. Depending on your goals, budget and comfort with market risk, these may deserve a look too:
- Term life insurance for affordable protection over a set number of years.
- Whole life or guaranteed universal life for more predictable values and premiums.
- Indexed universal life for cash value linked to an index with limits on both gains and losses.
- Retirement accounts such as a 401(k) or IRA, which often come first for retirement savings.
A consultation compares options for you
In a personal consultation, Markist compares approaches against your goals, timeline and budget. Recommendations are made only after an individual suitability review.
Talk through the trade-offs
Bring your questions to a one-on-one consultation. There is no cost and no obligation.