Variable Life Insurance
Variable Life Insurance Explained
Just like whole life and universal life insurance, variable life insurance is a type of permanent insurance. The key to variable life insurance is that you directly control your investments. If you are a savvy investor you could gain a much greater profit than with universal and whole life insurance.
Because variable life insurance gives you so much control over your investments, it is also the most expensive type of permanent insurance. You can invest in anything from stocks and bonds to money market funds. Be sure to ask detailed questions to your insurance company regarding this type of policy.
Because variable life depends entirely on your investment strategies, there are many risks associated with it. Your insurance company will not guarantee any minimums for your cash savings and may have clauses in your policy regarding poor investments. Also, unlike personal investments, your cash savings is tax deferred, even when you change investments. There is a great opportunity to grow your cash savings dramatically beyond that of whole life and universal life. But, at the same time, there is an equal opportunity to lose your investment.
Variable Life Insurance policies are meant for people who wish to directly control their cash savings investments. If you are not comfortable working with investments or do not feel you have the knowledge, variable life insurance is not for you. And, because your investments are tax deferred, variable life insurance can be a good investment strategy.
Just like whole life and universal life insurance, variable life insurance is a type of permanent insurance. The key to variable life insurance is that you directly control your investments. If you are a savvy investor you could gain a much greater profit than with universal and whole life insurance.
Because variable life insurance gives you so much control over your investments, it is also the most expensive type of permanent insurance. You can invest in anything from stocks and bonds to money market funds. Be sure to ask detailed questions to your insurance company regarding this type of policy.
Because variable life depends entirely on your investment strategies, there are many risks associated with it. Your insurance company will not guarantee any minimums for your cash savings and may have clauses in your policy regarding poor investments. Also, unlike personal investments, your cash savings is tax deferred, even when you change investments. There is a great opportunity to grow your cash savings dramatically beyond that of whole life and universal life. But, at the same time, there is an equal opportunity to lose your investment.
Variable Life Insurance policies are meant for people who wish to directly control their cash savings investments. If you are not comfortable working with investments or do not feel you have the knowledge, variable life insurance is not for you. And, because your investments are tax deferred, variable life insurance can be a good investment strategy.