If you decide that variable universal life insurance fits within your portfolio, what steps can you take to optimize its use over time?

1) Regular Reviews

At least annually, review your policy’s performance, fees, and any notable changes. Consider whether your subaccount allocations still match your risk tolerance or life stage. If not, rebalance accordingly.

2) Funding Adjustments

If your goal is to build a robust cash value, consider funding the policy beyond the minimum premium, especially during high-income years. Conversely, if you encounter financial strain, investigate whether your policy can handle reduced payments temporarily without jeopardizing coverage.

3) Monitoring COI Changes

Over time, insurers can adjust their cost of insurance within the terms allowed by the policy. Such adjustments might be driven by changes in mortality tables, economic conditions, or company strategy. Keep an eye on these changes to ensure your policy remains viable.

4) Policy Loans and Withdrawals

Use policy loans or withdrawals judiciously. If you take out a loan, pay it back or have a repayment plan. Unchecked loans can balloon over time as interest accrues, and large outstanding loans can lead to policy lapse if the cash value becomes insufficient.

5) Reassessing Your Death Benefit Needs

As you age and your financial responsibilities shift—children leaving home, mortgage paid off, or changes in wealth—you may find that you no longer need as large a death benefit. Some VUL policies allow you to reduce the face amount, potentially lowering your monthly charges.