What is variable life insurance?

Variable life insurance is a permanent life insurance policy with unique attributes, featuring distinct accounts encompassing investment instruments such as equity funds, stocks, bond funds, bonds, and money market funds. It offers a versatile approach to financial planning, combining both investment and life insurance components. In the unfortunate event of the policyholder's demise, variable life insurance provides a predetermined sum to their designated beneficiaries. Just like mutual funds and other investment vehicles, variable life insurance policies are accompanied by a prospectus, offering comprehensive information on policy charges, sub-account expenses, and associated fees. To ensure the policy remains in force and benefits are payable to the beneficiaries, it is imperative to maintain sufficient cash in the account to cover policy premiums. Failing to do so can lead to the forfeiture of death benefits. However, it's important to note that variable life insurance typically comes at a higher cost compared to term life insurance when providing a similar level of protection. Furthermore, the investment options for cash value within variable life insurance policies may be somewhat limited.

#VariableLifeInsurance #InvestmentInstruments #FinancialPlanning #PolicyBeneficiaries #ProspectusDetails #InsuranceCoverage #CashValueInvesting #TermLifeInsurance #FinancialProtection #InsuranceCosts #MutualFunds #DeathBenefits

Follow us and stay updated on the Go with the Market Charter 👇👇