FAQ: Why Choose Variable Life Insurance?
Posted in Life Insurance , Variable Life Insurance
September 11th, 2009
A variable life insurance policy is not only beneficial to the heirs who are chosen to receive the death benefit from the policyholder, but the policyholder can also reap the financial rewards of funding a policy that builds cash value over time.
By choosing a variable life insurance policy you will get the option to target your premium investment money towards opportunities of your choice. As a policyholder you can have your cash value invested into fixed income investments, stocks, bonds, or even money market funds.
Benefits of Variable Life Insurance Policies
- A variable life insurance policy cannot be canceled, unless you fail to pay your premiums
- Beneficiaries are guaranteed a death benefit
- The policy payments you make will build cash value and fund the policy
- The premium rates will never increase over the life the policy
- You have the option to borrow against the cash value of your policy
- You can choose investment options for your cash value
- Typically those choosing a variable life insurance policy can make 12 investment choices a year without penalty
- You can make changes in your investment choices without incurring taxes or transaction fees (up to the maximum)
- All monetary growth within the policy is tax-deferred (until withdrawal)
It is hard to consider choosing a life insurance policy when the last thing anyone wants to do is think about their own mortality. However, by taking the time to consider your insurance options now when you are young and healthy, you can make wise decisions that will affect both your future and the future of those you love.