NU Online News Service, July 14, 2004, 5:10 p.m. EDT
Many financial advisors like the idea of offering variable universal life insurance but are fuzzy about product details.[@@]
Jackson National Life Insurance Company, Lansing, Mich., has released figures supporting that conclusion in a report on a new, informal survey of 175 independent financial professionals who sell life insurance.
Although 87% of the survey participants agreed that variable universal life policies could offer value to many of their existing clients and 70% described VUL policies as a growth opportunity, only about half of the participants said they get more than 10% of their life business from VUL products.
Only 15% of the advisors understood the concept of paying for insurance costs and expenses with tax-free dollars using a variable life policy, and only half understood the taxation rules for VUL death distributions.
About 80% of the advisors said they would like to know more about how VUL policies could help clients address tax issues, Jackson National says.
Jackson National is a unit of Prudential P.L.C., London.