Article discusses whether a variable universal life insurance policy is necessary for James.

From Yahoo Finance: 2025-04-19 08:30:00

James, a 39-year-old with a $310,000 income, wonders if he should contribute to a variable universal life insurance policy. He has $550,000 in 401(k), $13,000 in HSA, $25,000 in cash savings, and $42,000 in an investment account, with no debts. He maxes out his 401(k) contributions yearly. (Source: SmartAsset)

Variable universal life insurance policies combine whole life features with death benefits and cash value accumulation. They offer flexible premiums and investment options in stock and bond subaccounts for potential growth. Consider if these features align with your financial needs before deciding. (Source: SmartAsset)

In James’ case, given his solid financial situation and saving habits, premium flexibility may not be a priority. With no significant debt and ample cash and investments, a VUL policy might not be necessary. Assess your needs before committing. (Source: SmartAsset)

By saving aggressively and consistently, James is on track for retirement readiness. With continued contributions to retirement accounts and backdoor Roth, he could reach $6.8 million by age 60. Evaluate if additional tax-deferred savings are needed before opting for a VUL policy. (Source: SmartAsset)

Consider the primary reason for life insurance: the death benefit. If protection for beneficiaries is your main goal, a term policy may be a more cost-effective option. Evaluate if the lifelong coverage of a VUL is essential for your financial plan. (Source: SmartAsset)



Read more at Yahoo Finance: Is Universal Variable Life a Smart Move With $310k Income and $550k in My 401(k)?