What Does Single Premium Variable Universal Life Insurance Mean?
Single premium variable universal life insurance is a type of permanent life insurance in which the premium is paid up front with a single, lump sum payment. After the initial payment, those who have this type of insurance no longer have to make any more premium payments. This type of life insurance carries an investment component.
Insuranceopedia Explains Single Premium Variable Universal Life Insurance
Single premium variable universal life insurance is an alternative to a standard variable life insurance policy. In a standard variable life insurance policy, premiums are paid periodically over many years. The cash value of these policies accumulates gradually. With a single premium variable universal life insurance policy, the cash value can accumulate rapidly since such a large amount is placed into it up front. Premiums for single premium variable life insurance polices are typically very large, since they have to be paid in a single lump sum.