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What is Variable Life Insurance?
A form of whole life insurance that accumulates cash value on a tax-deferred basis. With variable life insurance, the insured pays premiums that go into separate investment accounts owned by the insured. The policy includes a minimum guaranteed death benefit, but part of the death benefit is variable and depends on the performance of the underlying investment accounts. Due to the investment component of variable life policies, they are considered securities and are subject to securities laws and state insurance regulations.
The investment portion of a variable life insurance policy allows the owner to take part in a variety of different investment options. This means that unlike fixed value policies, the total value has the potential to grow – depending on how the chosen investment accounts perform. A variable life insurance policy holder can choose from a wide range of investment options including money market funds, bonds, mutual funds, and stocks.
The name variable life insurance reflects the structure of the policy because as premiums are paid, the portion of the premium that is allocated to the investments will vary depending on how the investment accounts are performing at that time. It is important to note that investment markets can both rise and fall. It is important to remember that it is possible that the value of a variable life insurance policy could decrease if the investment accounts perform poorly.
Selecting the right form of life insurance for you and your family starts with expert consultation. Our insurance consultants will review your individual needs, explain the options, and build a policy designed specifically for you. Plus, our relationships with the top carriers means you will get the best coverage at an excellent price. We look forward to serving you!