5 Ways to Explore Variable Life Insurance

Variable life insurance is a great choice for some individuals. When you pay your premiums, a portion of the money for a variable life insurance policy is put into another account. This amount is designated for investments like money market funds, equity funds, bond funds or a mix of these. Variable life insurance is a whole life insurance option, which pays out benefits when the insured individual dies.

1. Do you like whole life policies?

It is important to take the time to learn about the different types of life insurance available to you. If you have decided that whole life coverage is a good option for you, variable life insurance may be a good choice for you. It can help you afford it more easily or may offer you other advantages that appeal to you.

2. Do you like flexibility?

Some of the features of variable life insurance are shown below.

  • Gives lifelong protection for your beneficiaries
  • Has a cash value, which may be important to you
  • Offers an opportunity to earn money from your investments tax-free, which can be put towards your premiums.

You can participate in a variety of investment opportunities. Variable life insurance lets you do this without tax implications. This type of policy adapts to the changes you want to make. If you want to change your death benefits or the amount or schedule of your premiums, you can make these changes. Changes can be made based on the terms and conditions noted in the policy.

3. Do you like taking market risk?

If the market does not grow, the money you were counting on to help you pay your life insurance premium is not there. The investment portion of a variable life insurance policy leaves you subject to losses. If you happen to be unable to pay premiums or postpone payments, the value of the policy will decline, as will the death benefits. Even though there is a possibility that your benefits or cash value will decline because of poor investment performance, there are safeguards in place that prevent you from dipping below a preset level.

4. Are you okay with a fixed face amount on the policy?

The face amount of this type of policy cannot be altered. If you want more coverage you will need to purchase a different policy.

5. Do you want a long-term investment?

Life insurance is generally a long-term investment. You want to choose an insurer that is solid and will be around in the future when your policy benefits come due. You should get information from one of the independent insurance rating firms, like Moody’s or A.M. Best on the financial standing of the firms you are considering. These companies assign letter grades to insurers based on a variety of factors and are reliable indicators.


It is a good idea to look at the insurer’s record in terms of customer service, in addition to your life insurance agent. Do a search for online reviews and complaints from those who received benefits from the insurers you are considering getting a policy from. Most insurance companies are wonderful to deal with as you pay premiums regularly. When they must pay out benefits, the service may not be as friendly or prompt. You should read reviews from beneficiaries, not the insured.

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