“I work with a lot of corporate owners and people with large estates. They make good money, have paid their income taxes and are looking for places to put dollars where they can earn more than they do in tax-free munis or other taxable investments. These people particularly like variable universal life (VUL) to fund things like salary continuation on a tax-favored basis either for themselves or their highly paid key people.

“It’s amazing to me just how many of these successful corporate owners haven’t heard of variable universal life. When I explain it to them, some think it’s too good to be true. I often hear, ‘How come I’ve never heard of this before?’ They have a difficult time believing that within an insurance contract, there are many investment choices, and when I tell them about the tax-free withdrawal features and the zero net-cost loans, it really piques their interest.” — Robert Stanworth, producer with Lincoln Financial Group

Editor’s Note: The preceding tip was taken from “Variable Universal Life: Finding Its Place in Today’s Financial Climate,” by Steve Roche, which ran in the September 2003 issue of Life Insurance Selling. To read the whole story, click here.

To read last week’s Tip of the Week, click here.

For more on VUL, see:

Selling Success with Variable Universal Life

Variable Universal Life: Covering New Ground in Protection and Income

Producer roundtable: An expert look at UL in all its forms and fashions