Variable Life Insurance

Variable life insurance is permanent life insurance and provides protection for life.  These policies are valuable because they provide permanent protection and may accumulate cash value.  However, these policies carry more risk than traditional whole life insurance policies.

Insurance

This type of life insurance is "variable" because it allows you to allocate a portion of your premium dollars to a separate account comprised of various investment funds within the insurance company's portfolio, such as an equity fund, a money market fund, a bond fund, or some combination thereof.

Variable

Variable universal life is a type of permanent life insurance, because the death benefit will be paid if the insured dies any time as long as there is sufficient cash value to pay the costs of insurance in the policy. 

Variable life products allow the contract holder to choose and appropriate amount of life insurance protection that has an additional cost associated with it.  Variable life combines life insurance with a tax-deferred investment account, and provides tax-free access to the cash value of the policy.

Policy

Policy holders should be able to see what is happening with their money on a daily basis when part of the premium is invested.

Policy holders can borrow against the accumulated cash value or cash in the policy.  Policyholders can also choose an increasing death benefit that includes the face amount plus the value of your funds.

Benefit

Benefits are variable based on the value of equity investments, and premiums and benefits are adjustable at the option of the policyholder.  Hence, the value of the death benefit and the cash value may fluctuate up or down, depending on the performance of the investment portion of the policy.

Policies

Policies may vary depending upon the insurance company and what investments they allow for variable life insurance.  Policies commonly have mortality and expense charges.

Premiums

Premiums for variable life are usually much more costly then other life insurance policies but the policy holder can choose the amount of the death benefit.

Variable life insurance products are more complicated than basic term life insurance and you may wish to consult a local life insurance agent if you are interested in variable life insurance products. 

You will find many top rated local agents throughout this page.