The securities and investment fraud attorneys at Malecki Law are interested in hearing from investors who have purchased Variable Universal Life Insurance (VUL) policies.
According to Investopedia, VUL policies combine a death benefit with investment feature. The investment feature generally includes sub-accounts, as with other variable annuities, that invest in stocks and bonds, or mutual funds that have exposure to stocks and bonds. While a VUL investment feature may offer an opportunity to gain an increased rate of return by investing in securities, it generally comes with higher management fees and commissions. As a result, these commissions and fees must be weighed against the risk of loss in the securities purchased. These risks must be disclosed to the investor prior to investment.
Issues surrounding VUL policies are not new. A U.S. News and World Report article from 2011 highlighted that these types of policies generally come with higher fees, fewer investment options and sometimes surrender policies.