2013 saw a jump in sales for Variable Universal Life and Indexed Universal Life, up by 24% and 13% respectively. Both of these types of insurance incorporate an equity related growth component in addition to traditional life insurance benefits.
In a recent Wall Street Journal article, The Great Life Insurance Temptation, Leslie Scism states:
“Variable universal life can benefit investors in the highest tax bracket who already have socked away the maximum allowable amounts in tax-deferred retirement accounts and similar savings vehicles. Indexed-universal life policies can be helpful to a wider range of affluent buyers making long-term financial plans…
Yet the products aren’t appropriate for many middle-class households, and even well-to-do consumers should wary, according to experts and state regulators.”