Managing Multiple Funds Through A Single Variable Life Insurance

Potential policy buyers need not worry about high-priced premiums. Term Life Insurance is an affordable alternative, which provides financial protection at a relatively low price. Potential policy buyers need not worry about high-priced premiums. Term Life Insurance is an affordable alternative which provides financial protection at a relatively low price.

Variable Life is a permanent insurance policy that allows investment of the premium amount in separate investment funds such as fixed income investments, stock, bonds or the money market fund. Policy buyers are permitted to switch investments two to five times every year depending on the terms of the insurance provider. Unlike Universal Life, Variable Life Insurance allows complete control of the investment.

Life Insurance is of two basic types namely Term Life Insurance and Whole Life Insurance. In the case of Term Life Insurance, the amount of insurance and the policy period is chosen by the policy buyers. The Whole Life Insurance offers additional benefits of cash value along with life insurance.

Variable Life Insurance policies are expensive but offer more control and flexibility as compared to other policies. There is enough potential to earn tax free profits and provide the beneficiary with a substantial amount of tax free money. As it is possible to save on estate taxes, policy buyers purchase Variable Life Insurance for their heirs who are eligible to withdraw the cash value or borrow against it.

Variable Life Insurance policy holders can switch investments without incurring any charges or taxes. Most insurance providers limit the number of such investment switches to twelve per year. The downside of Variable Insurance is the risk involved in the cash value component which depends largely on the performance of investments.

Premium payments remain the same throughout the policy period. The unexpected death of the policy holder entitles the beneficiary to receive the insured amount as death benefits. The Term Life Insurance can tailor made to suit individual requirements. For example, young individuals with dependants may need a different type of coverage as compared to individuals who are nearing the age of retirement. Term Life Insurance can be further personalized by including special riders relating to Child, Waver of Premium or Accidental Death.

Among the most important things to remember when procuring a Term Life Insurance quote is the premium payment affordability. Premiums can be paid monthly or semi-annual basis. Also, it is necessary to remember that such policy is a pure form of insurance with any additional benefits as in the case of Whole Life Insurance. As per the conditions of the Term Life, should the policy holder die even one day after the specified policy period, the beneficiary will not be entitled to any insurance benefits.