What is variable universal life insurance?
Variable universal life insurance is a policy whose cash value is based on the performance of an investment sub account, which operates like a mutual fund. The cash value can be invested in a variety of investments that can include stocks, bonds, and money market funds. In addition, capital gains and other investment earnings may accrue tax deferred as long as the funds remain invested in the insurance contract.
Potential risks of variable universal life insurance
- No guarantee - There is no guarantee on the cash value of variable universal life insurance. The policy's investment component is subject to investment risk, including possible loss of principal, which may result in a lapse of coverage if additional premiums are not contributed.
- Charges and expenses - Charges, fees and expenses may be higher than other types of insurance contracts. In addition to the standard charges, fees, and expenses, variable universal life policies also have an investment management fee associated with the available mutual funds.
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Disclaimers
Investment, annuities, and variable life insurance products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. In California, HSI conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. HSI is an affiliate of HSBC Bank USA, N.A. Whole life, universal life, term life, and other types of insurance are offered by HSBC Insurance Agency (USA) Inc., a wholly owned subsidiary of HSBC Bank USA, N.A. Products and services may vary by state and are not available in all states. California license #: OD36843.
Investments, Annuity and Insurance Products: Are not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency; Not guaranteed by the bank or any of its affiliates; and subject to investment risk, including possible loss of principal invested.
All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.
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Environmental, Social & Governance (“ESG”) and Sustainable Investing (“SI”)
HSBC Securities (USA) Inc. (“HSI”) does not provide recommendations or advice on any products based on ESG or SI considerations except in certain discretionary solutions or based on HSBC Group’s* policies. Customers can purchase ESG/SI related products on our platform on a self-directed basis. For our general ESG/SI disclosure, click Disclosures- HSBC. Information about HSBC Group’s approach to Sustainability can be found at Our climate strategy | HSBC Holdings plc.
*HSBC Group refers to HSBC’s global affiliates.