Variable Universal Life Insurance
Variable Universal Life Insurance vs Whole Life
Variable life insurance plan is a permanent policy that allows policyholders to adjust their death benefit and Variable Universal Life Insurance premium payments. The policyholder can also invest in a variety of sub-accounts, which are similar to mutual funds.
The primary beneficiary of variable Universal life insurance policy is the policyholder. Variable life insurance policy provides the policyholder with the ability to adjust their death benefit. Also, it offers premium payments, as well as the ability to invest in a variety of sub-accounts.
Variable life insurance policies have a minimum death benefit. Furthermore, insurance company guarantees it. However, you can increase the death benefit amount based on the performance of the investments. Also, it gives you the chance to use cash value for your premium payments or take loans.
Variable life insurance is complex and riskier type of life insurance. And, the policyholder is taking on more risk because the cash value and death benefit of the policy. These depends on the performance of the underlying investments, which can shift. This type of insurance may be suitable for individuals with a high risk tolerance, and who are willing to invest in the stock market. So, it’s important to consult with a financial advisor before making any decisions on this type of insurance. Moreover, you should be aware of the potential risks and benefits of variable life insurance.
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Variable Universal Life Insurance Pros and Cons
The key features of variable life insurance include the following: