What Is Variable Life Insurance And What Does It Offer
Variable life insurance is one type of coverage, and this type offers pros and cons just like every other type. This is one of the life insurances that are most popular, and the biggest benefit that these policies offer you is flexibility. These policies are often referred to as life insurance plus, and there is a savings and investment component involved. Variable life insurance may seem confusing at first, but it does not have to be. Understanding what you can get from this insurance and how it works will help you determine whether it is the right option for you or not. When you choose this life insurance type, your premiums will be split up, with a portion going towards the payment of the life insurance component, a portion going towards the saving component, and a portion is invested, and that you can earn interest on. With these policies the premium amount may fluctuate, depending on the market performance and the investment options you choose.
Variable life insurance policies are considered permanent, and are intended to be used in financial planning for your future. You decide how much of the premium to pay, and with the savings and investment features you may not have to send in premium payments. If your balance is more than your premium payment you can choose to have the amount due taken out, or you can pay the premium and leave the accumulated savings alone to continue to grow. Variable life insurance allows you to choose the investments you want to put your money into, so you have control over how your money grows and where it goes. Some other life insurance types may offer cash value, but the insurance company chooses the investments for you and you have no control. Another method is to let you choose but only having a limited number of investment choices. With variable life insurance you will usually have a wide range of investment options, and a great deal of flexibility with your money. These policies still have a death benefit, so you leave financial protection behind for those you love and want to provide for.
The biggest benefit of variable life insurance is that you make all the decisions, and you have flexibility in many matters. You can choose the coverage you want, how much to invest and save, and how much to leave when you pass away. This coverage can be customized to meet your specific needs, circumstances, and budget. You can make withdrawals if you have a balance, use extra funds to pay your premiums, and much more. Variable life is considered permanent coverage, and the life insurance portion may be completely funded with no further premiums due if the market does well with your chosen investments and you have decent returns. If you are looking for a life insurance policy which gives you a death benefit to your beneficiaries, plus financial planning tools so that you can help your money grow and build cash value for your policy, then variable life may be right for you.