How am I Billed for Variable Life Insurance?
Variable life insurance is a costly but beneficial way to invest for your future needs and provide a death benefit to your family when you are no longer there for them. Variable life insurance is the most expensive insurance because a portion of each premium payment not only goes to the benefits payment, but also contributes to the cash value investment that policyholders can benefit from.
Variable Life Basics
Variable life insurance is often compared to a mortgage payment in the sense that both have costly payments, and customers need a long time to “pay-up” to fully own the property or policy. If you opt into a variable life policy, you will be paying monthly and be expected to pay your premium on time. Variable life insurance offers permanent life insurance protection unless a person does not pay their premiums on time.
Payments and Billing
The bill amount will vary based on the length of the variable life insurance policy and the overall amount of coverage/investment you opt into. But because the overall cost for maintaining a variable life policy is so steep, monthly bills and payments are the easiest way for policyholders to fit this expense in their overall budget. Another interesting feature is that the out of pocket premium costs can be offset by any gains made in the market on the cash value. Those profits can be applied directly to the insurance bill due at that time.
If you are interested in utilizing a variable life insurance policy to give a gift to your heirs as well as plan for your own financial future, it would be extremely beneficial to speak to a professional to help plan your strategy.