Investment options inside a VUL
Your cash value is allocated among subaccounts. Understanding them helps you match your allocation to your goals and comfort with risk.
What you can typically choose from
Each subaccount is a separate investment portfolio with its own objective, risks and expenses. The prospectus lists the exact options available.
Equity subaccounts
Invest primarily in stocks: large, mid and small companies, U.S. and international. Higher growth potential with higher volatility.
Fixed income subaccounts
Invest primarily in bonds. Typically less volatile than stocks, with interest-rate and credit risk.
Asset allocation subaccounts
Professionally managed mixes of stocks and bonds targeting a risk level, from conservative to aggressive.
Two fixed options
Pacific Select Harbor VUL offers two fixed options with guaranteed minimum interest crediting rates. They are part of Pacific Life’s general account and backed by its claims-paying ability; an asset charge may reduce their effective yield.
Rebalancing
Some policies offer automatic rebalancing back to your chosen mix on a set schedule.
Dollar-cost averaging
Where available, moves money into chosen subaccounts gradually over time. It does not assure a profit or protect against loss.
Questions to ask yourself
- How many years until I may want to access cash value, if ever?
- How would I react if my cash value dropped 20% in a year?
- Do I want to manage the mix myself or use an asset allocation option?
- How often will I review and rebalance?
Read the prospectus before you decide
A VUL policy is a variable product. The current prospectus describes the policy's features, charges, investment options and risks in full. Ask Markist for the current prospectus and review it carefully.
Past performance does not guarantee future results
Subaccount values fluctuate. Diversification and asset allocation do not ensure a profit or protect against loss in declining markets.
Build an allocation that matches you
Review your goals, timeline and risk comfort one-on-one.