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  • Dollar Cost Averaging For Universal Life Policy

Put dollar cost averaging to work in your variable universal life policy

Couple sitting in their kitchen looking at paperwork.

Variable universal life offers life insurance protection and the opportunity to grow tax-advantaged assets in the market. 

Wondering whether this is the right time to invest? One way to reduce uncertainty is to employ the time-tested strategy of dollar cost averaging, or “DCA.” Rather than trying to “time the market” with a single purchase, DCA allows you to invest systematically over time with the goal of lowering your average purchase price.1

Dollar Cost Averaging Chart

Special DCA accounts

For greater confidence, the New York Life Variable Universal Life Accumulator II offers two special DCA accounts that offer a guaranteed interest rate as your money waits to enter the market.

DCA Plus Account

Earn a guaranteed interest rate on assets in the account as they wait to enter the market in the first 12 months of your policy. The rate is subject to change at any time but will never be less than an annual rate of 2%. Your New York Life financial services professional can tell you what the current rate is.2

DCA Extension Account

Earn a guaranteed interest rate on assets in the account as they wait to enter the market through up to year 7 of your policy. This account is available for premiums of $10,000 or more. The rate is subject to change at any time but will never be less than an annual rate of 2%.2

Variable universal life insurance provides a life insurance benefit in exchange for flexible premiums. The policy’s cash value will fluctuate, including investment gains or losses. Mortality and expense risk charges, cost of insurance charges, per thousand face amount charges, monthly contract charges, fund fees, and any applicable surrender charges apply. 

Please carefully consider the investment objectives, risks, charges, and expenses before investing. This and other information can be found in the product and underlying funds prospectuses. Please read the prospectuses carefully before investing or sending money.

1 Dollar-cost averaging may help investors achieve a lower average purchase price, but it does not guarantee a profit nor does it protect against loss. Investors should consider their ability to continue making purchases through periods of low prices.

2 All guarantees are based on the claims-paying ability of the issuer. The rate is paid only while the premium remains in the DCA Plus or DCA Extension Account waiting to be transferred, and the declining balance will not achieve the declared annual effective rate. Once money is transferred into the Investment Divisions it will be subject to market risk and will fluctuate in value.

The DCA Plus Account and DCA Extension Account interest rates should not be used as the sole criteria for purchasing a policy. Investors should only consider buying a variable universal life product if it makes sense because of the combination of features, including the life insurance protection.

The DCA Plus Account is available only at time of issue and with a minimum of $1,000 of the initial net premium. The minimum premium for the DCA Extension Account is $10,000. Transfer limitations into and out of the accounts apply. Please consult with your New York Life financial services professional or the prospectus for more information.

In most jurisdictions, the form number for New York Life Variable Universal Life Accumulator II is (ICC17-317-30). State variations may apply.

Variable universal life products are issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation) and distributed by NYLIFE Distributors LLC, Member FINRA/SIPC. Both NYLIAC and NYLIFE Distributors LLC are wholly owned subsidiaries of New York Life Insurance Company.