Variable Life Insurance
Variable Life Insurance: What is it and How does it work?
Variable life insurance is a type of permanent insurance, which means that the policy never expires. Variable life insurance policies are designed to provide tax-advantaged growth, while offering flexibility and control over the investment options in your policy.
Variable life insurance policies are issued by insurance companies and can be purchased by individuals, families, or corporations. The premium you pay for your variable life policy is invested into money market funds, mutual funds and/or individual stocks. The total amount of risk you’re willing to take on determines how much of your premium you invest in stocks versus bonds or other fixed-income investments.
The rate of return on your investment depends on the performance of the underlying investments within the policy; if they perform well, then so will your return on investment (ROI).
The advantage of this type of insurance is that it allows you to invest your premiums in almost any type of fund, including stock and bond funds, money market accounts, and more. You can choose the level of risk you want to take on (how much volatility in your portfolio), and you can even choose a specific fund based on how well it has performed over time.
When you purchase a variable life insurance policy, you’ll have two accounts: one for the death benefit and one for the investment account. The death benefit is paid out when you die (or when someone else named in the policy dies). The investment account grows based on how well your investments perform over time.
Why you need Variable Life Insurance?
Variable life insurance is a type of permanent life insurance that combines the tax benefits of whole life insurance with the flexibility of an investment account. This allows you to grow your money in a tax-advantaged way while still being able to access it when you need it—and without having to pay any penalties or surrender charges. Variable life insurance also offers many other benefits:
Flexibility
If you’re looking for flexibility, variable life insurance may be right for you. The death benefit and premium can both be adjusted at any time according to your changing needs and financial situation.
Tax-deferred payment
With a traditional life insurance policy, the premiums are paid annually in one lump sum each year; however, with a variable life policy, there’s no set premium amount or date each year—instead, payments vary according to market conditions and interest rates so that premiums stay low but still cover costs.
Tax-free growth
Variable life insurance policies grow tax-free, which means they give you an opportunity to build wealth while taking advantage of the tax advantages available through these policies.
Security
Your policy guarantees that your beneficiaries will be provided for in case something happens to you, so there’s no guessing about what will happen next.
Get a Variable Life Insurance Quote Today!
Are you still paying for long-term care insurance? Call Independent Insurance Agent today and find out how you can save a ton of money on premiums by paying for your long-term care with a Variable Life Insurance in Las Vegas, NV. We’ll answer all your questions in a free, no obligation consultation. Our online application and advisor access means you’re taken care of, with easy to understand pricing that lets you see how much coverage you really need.
Variable Life Insurance - FAQs
Variable Life Insurance is a type of life insurance policy that combines the of life insurance. It allowsholders to invest a of investment and bonds, which can appreciate over time.
Variable Life Insurance differs from other types of life insurance in that it offers policyholders the opportunity to invest in a range of investment options. This means that the value of the policy can potentially increase over time, based on the performance of the investments.
The benefits of Variable Life Insurance include the opportunity to accumulate cash value, the ability to customize the policy to fit your specific needs, potential tax advantages, and the flexibility to change the investment options over time.
The risks associated with Variable Life Insurance include the potential for investment losses, fees and expenses associated with the policy, and the possibility that the policy may not perform as well as expected.
The appropriate amount of coverage for your Variable Life Insurance policy will depend on your individual needs and circumstances. Factors to consider include your income level, debt obligations, and the financial needs of your dependents.
Choosing the right investment options for your Variable of your, investment goals, and overall financial situation. It may be helpful to consult with a financial advisor to determine the most appropriate investment strategy for your needs.