Options for a Variable Life Insurance Plan
When a whole life insurance plan is described as "variable," it means that the policy allows its policy holder to have full control over the amount of premium dollars that would normally go into the "cash value" pile (which would be invested and accrue interest by the insurance company) into various types of financial portfolios, from stocks, to bonds, money-market and international markets.
Request a free variable life insurance quote today.
Variable universal life insurance
Another type is the Variable Universal Life Insurance, quickly gaining popularity among life insurance buyers in the US. This provides the flexibility of investing your cash value on your own terms as in a Variable Life Insurance Plan, as well as the flexibility of choosing how much you pay for your premiums and death benefits associated with a Universal Life Insurance Plan. In other words, it's the best option for those who want to assume the most control over their life insurance.
What you should know about variable life insurance risk
It must be noted, however, that by assuming control over the cash value of your stock, you are also responsible for the risk of entering your premium dollars into investment portfolios. You might make much more than an insurance company, but you also might lose some of your death benefits.
Variable life insurance does not apply to term life insurance plans. Holders of term life policies don't "overpay" their premium the way whole life policies do, and therefore, don't accrue the cash value.
If you are interested in a variable life insurance plan or variable universal life insurance plan, you can start by requesting a free quote today. Later, our representatives can help you decide what policy is best suited for your needs.