2018 Best Variable Life Insurance Quotes Online
What is Variable Life Insurance
Variable universal life insurance is a form of universal life insurance that has a death benefit and an investment component.
As long as your premiums are paid, your variable universal life insurance policy will stay in place.
As with other universal life insurance policies, it has the potential to accumulate cash value over time.
The difference between variable universal life insurance and other types of permanent insurance is that the policyholder directs how premiums are invested.
This provides access to the potentially higher returns provided by the financial markets.
It also means returns could underperform those provided by other life insurance products.
Generally, there are several subaccounts in which the policyholder may choose to invest.
There may be a fixed-interest option as well as various stock, bond, or money-market choices.
Guarantees are based on the claims-paying ability of the issuing company.
Variable universal life insurance can be structured so that the cash value that accumulates will eventually cover the premiums.
However, additional out-of-pocket payments may be required if the policy’s dividend decreases or if investment returns underperform.
What is the cost of Variable Life Insurance
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased.
Life insurance policies have expenses, including mortality and other charges.
If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications.
You should consider determining whether you are insurable before implementing a strategy involving life insurance.
Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
Best Variable Universal Life Insurance Quotes
Flexibility is the key asset of a variable universal life insurance policy.
With variable universal life insurance, you’ll get permanent life insurance with an investment component that accrues a cash value which you can borrow against.
The payout upon the insured’s death – called the death benefit – is usually a constant figure.
The other piece of your variable universal life insurance policy is a portion of the money you pay into the policy every month is saved or invested, meaning your policy will accrue cash value.
Variable universal life insurance may be viewed as a blend between insurance and an investment vehicle.
Unlike regular universal life insurance, the investment element of a variable universal life insurance policy has sub-accounts operating like mutual funds.
The values of these sub-accounts may vary as they’re invested in the stock and bond market. This means you could see an increased rate of return as opposed to universal life or whole insurance policies.
With variable universal life insurance, unlike other insurance types, the policy holder has control over their own investments.
The policyholder is only required to pay enough to cover the death benefit and fees each month, any additional premiums that you may pay are optional and adjustable.
When you choose a variable universal life policy, be sure to check the management fees of the investment options.
Unlike other universal life policies, this is a fee unique to variable universal life insurance policies thanks to its usage of mutual funds. In fact, critics of variable universal life insurance note that high fees in general are a drawback to this type of life insurance.
Should you buy Variable life Insurance
Each person’s situation is different and Variable life insurance is a great tool for people looking to get permanent coverage, invest money for retirement and college education and never be taxed on that money.
Of course there are going to be fees.
The insurance companies are in this business to make a profit for doing the work that they do.
And good advisors are going to be upfront with their clients telling them all of these details.
Get a Free Variable Life Insurance Quote Online
There are many things to take into account when purchasing life insurance, and changes in your life situation can reflect changes in your insurance requirements.
That’s why it’s important to carefully consider the different policy options and ensure that you have the right solution to meet your long-term life insurance needs.
An insurance specialist with Mintco Financial will review your current life insurance situation and help you design a policy to plan for the future.
At the end of the day, one of the biggest investments you can make is an investment in yourself.
Call us at 813-964-7100 or 716-565-1300