Variable life insurance policies are a permanent life insurance policy that is connected to an investment platform of stocks and/or bond mutual funds. For the more investment savvy buyer, this policy type allows the insured to select various investment options that act as a savings vehicle under their policy. Due to the flexibility of choosing how to distribute your funds, the premiums on variable life insurance policies tend to have a higher premium. With the insured making the investment decisions, there is greater risk involved and the return on investment does not hold a guarantee. In essence, the death benefit payout is based on the positive or negative performance of the investments chosen by the insured. As with all life insurance policies, the insurance company determines the eligibility and premium rates for the insured.
• Medical history
• Motor Vehicle History
• Risk Assessment
• Life History
Before deciding on whether a variable life insurance policy is best for you, consider what you need for the following:
• Having enough money to pay for final expenses (i.e. funeral costs)
• Having enough money to cover outstanding debts
• Having enough money to cover children’s education
• Having enough money to compensate for lost income
Due to the fact that variable life insurance policies are of the riskiest available, caution is recommended when purchasing this form of benefit.