Your position in the financial life cycle can influence how and why you might adopt VUL life insurance:

Early Career

Young professionals who anticipate years of income growth might opt for VUL to combine insurance protection with a chance for higher returns. They can tolerate volatility because of their lengthy time horizon and potentially direct a portion of each paycheck into the policy. However, they must remain mindful of fees.

Mid-Career and Accumulation

Individuals in their 40s or 50s might use VUL to protect dependents and build cash value more aggressively. With higher earning potential at this stage, they can fund the policy well. Strategic reallocation from equity-heavy subaccounts to more balanced funds as they age could smooth volatility.

Approaching Retirement

People in their late 50s or 60s might shift a VUL’s allocations to safer subaccounts. The goal changes from aggressive accumulation to preserving cash value for potential withdrawals or loans. They must also ensure premiums remain adequate as COI rises with age.

Post-Retirement

Retirees who maintain VUL might be tapping into the cash value for extra income or might hold the policy primarily to deliver a death benefit to heirs. They often need to monitor the policy closely, since COI can be quite high, and market dips can erode the policy’s viability quickly if subaccounts are still growth-oriented.