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What is Variable Life?
Today's dynamic economic environment has created a need for a flexible insurance plan that will fill a client's insurance needs and, at the same time, adapt to a client's investment needs. To compete for financial product dollars, a product must not only offer protection, but it must also be an investment vehicle which offers substantial growth potential and provide the client with choice and control over how his/her investments are made. In response to that need Variable Universal Life combines the flexibility and Tax Advantages of a universal life policy with the investment opportunities of a market based returns in separate investment sub-accounts managed by professional money managers. Variable Universal Life is a life insurance product so it has ALL of the benefits of TAX-DEFERRED growth of the cash value and TAX-FREE distribution of the death benefit. HOWEVER, instead of the insurance company deciding where your money is invested, you and your clients determine the most appropriate investment strategy. In addition the account values of your clients are segregated from the insurance company's general account and therefore always available to your client. Advantages - Complete flexibility in customizing an insurance plan for your client. You have the ability to move your clients accounts between several sub-account investment management companies without incurring any transfer expenses. The client, with advice from his advisor, can change investment strategies as his or her needs change. What's more, transfers between sub-accounts are not taxable events. Disadvantages - Because Variable Universal Life utilizes market based investment sub-accounts for it's investments, the client must have a higher risk tolerance than for a traditional cash value contract. The additional expenses related to the money management, preclude this product from a minimum funding scenario.
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Send mail to webmaster@fimadvisors.com with questions or comments about this web site.Regulatory Disclosure InformationSecurities offered through Mutual Service Corporation. Mutual Service Corporation and LPL Financial are affiliated companies and are members of FINRA/SIPC. FINRA web site is www.FINRA.org. Investment Advisory Services offered through Financial & Investment Management Advisors, Inc., an SEC Registered Investment Advisory Firm. Financial & Investment Management Advisors, Inc. is not affiliated with Mutual Service Corporation or LPL Financial.Certified Financial Planner Board of Standards Inc. owns
the certification marks CFP®,
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