Single Premium Variable Universal Life Insurance
What Does Single Premium Variable Universal Life Insurance Mean?
Single premium variable universal life insurance is a form of permanent life insurance where the entire premium is paid upfront in a single lump sum. After this initial payment, policyholders are not required to make any further premium payments. This type of insurance also includes an investment component.
Insuranceopedia Explains Single Premium Variable Universal Life Insurance
Single premium variable universal life insurance serves as an alternative to standard variable life insurance policies. In a standard policy, premiums are paid periodically over several years, allowing the cash value to grow gradually. In contrast, with a single premium variable universal life insurance policy, the cash value can grow rapidly due to the significant upfront payment. However, premiums for these policies are typically substantial, as they must be paid in a single lump sum.
