What is flexible premium variable life insurance?
Variable universal life insurance policies have the cash value structure of variable life insurance, but you can use the cash value to pay premiums. You can also pay a larger amount in premiums if you choose to do so. Therefore, these policies are sometimes referred to as flexible premium variable life insurance.
Does variable life insurance have flexible premium payments?
In addition, the account can accumulate a cash value but cannot be invested. Similarly, variable life insurance allows for the accumulation of cash value. However, the cash value can be invested in funds in a separate account, and the death benefits and premiums are flexible.
What is a variable life insurance policy?
A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death.
What type of life insurance incorporates flexible premiums?
What type of life insurance incorporates flexible premiums and an adjustable death benefit? Universal Life is designed to provide flexible premiums and an adjustable death benefit.
Which type of life insurance offers flexible premiums a flexible death benefit and the choice of how the cash value will be invested?
Universal life insurance policies offer flexible premiums that may allow you to adjust how much you’ll pay each year by accessing some of the policy’s cash value (though you will need to pay the minimum premium amount or the policy will lapse).
Can you cash out a variable life insurance policy?
You can cash out a life insurance policy while you’re still alive as long as you have a permanent policy that accumulates cash value, or a convertible term policy that can be turned into a policy that accumulates cash value.
Who is variable life insurance good for?
Variable life insurance is only appropriate for individuals with specific life insurance protection needs. Substantial fees, expenses, and tax implications generally make variable life insurance unsuitable as a short-term savings vehicle.
What type of premium is variable whole life insurance based on?
A variable life insurance policy is based on level-fixed premium. as the cash value component increases, premiums decrease.
What is the greatest risk to a variable life insurance policy?
The greatest risk in a variable life insurance policy is the risk of the investments. The insurance company doesn’t guarantee any rate of return and doesn’t offer protection for investment losses. Like any investment, the cash value component of a variable life insurance policy comes with risk.