US Variable Universal Life

In message , snipped-for-privacy@my-deja.com writes

Could you give us a clue by describing what it does?

A combination of the features of Variable Life Insurance (like UK Unit Linked) and Universal Life Insurance under the same contract. Benefits are variable based on the value of equity investments, and premiums and benefits are adjustable at the option of the policyholder.

Universal Life - A combination flexible premium, adjustable life insurance policy. The premium payer may select the amount of premium he or she can pay and the policy benefits are those which the premium will purchase. Or, the premium payer may change the amount of insurance and pay premium accordingly. Many believe this is the only true solution to the "buy term invest the difference" problem.

In message , snipped-for-privacy@my-deja.com writes

In that case yes, you seem to be describing a unit linked whole of life policy, where there is a trade off between level of cover and investment. Doubtless lots of people will now jump up and down and scream and shout that mixing the two in one policy is a Bad Thing(TM).

AFAIK, such policies do exist, except (possibly) for the variable premium aspect - but they are unlikely to be Qualifying policies for UK tax purposes.

In message , " snipped-for-privacy@privacy.net" writes

For regular contribution Whole of Life (as opposed to single premium) it would be a Bad Thing only if the policy is 'sold' as an investment contract, not solely as a protection contract with an investment element to smooth premiums. .

In message , Doug Ramage writes

Yes, but so long as the premium level is set no more that the 'standard, or 'Balanced' level and if the product is advised for protection purposes only, that shouldnt matter.