What is Variable Life Insurance? |
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Answer:
Variable life insurance is a type of permanent Choosing a variable life insurance policy allows you to choose investments that meet your level of risk tolerance. Your portfolio’s performance will affect your cash value as well as your death benefits though the death benefit can’t fall below your initial insurance purchase. Just as if you were investing in the stock market, you’ll bear the burden of the risks. There aren’t any guarantees; your investments could go up or they could go down. This type of insurance is considered a security because you are risking your money in handpicked investments. Because of this, laws govern how variable life insurance is sold. You will get a prospectus detailing specific facts about the policy and the company behind it. This type of insurance often costs more than other types of cash value life insurance policies. The cash value of your variable life insurance is not currently taxed until you cash in the policy. Trackback(0)
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