Variable Life Insurance
What Is Variable (Universal) Life Insurance?
Variable life insurance and variable universal life insurance are types of permanent coverage that allocate cash value to investment subaccounts. They’re designed for people who:
Plan to pay active attention to their life insurance.
Can fund a policy heavily in its early years.
Are willing to add stock market risk to their life insurance.
How Does Cash Value Work?
With any “variable” policy, you’ll be able to choose how your cash value is allocated, with some limitations. Your insurance company will let you know your options, and then you can choose based on your investment strategy. If these subaccounts do well, you’ll increase your cash value. If not, your cash value will decrease. If the cash value exceeds a certain amount, the death benefit will increase. Note that if the cash value reaches zero, your policy may terminate. In addition, variable universal products often don’t come with a guaranteed death benefit.
CALL 866-780-8874
Differences between variable life and VUL insurance
Variable life insurance and VUL both have cash values that vary with the performance of an underlying portfolio of investments. They also share some other traits, such as:
Control over what your cash value is invested in.
Return rates without caps.
Increased reliance on your investing experience.
The chance your investment subaccounts could drop in value.
While there is some overlap, variable life and VUL are different products. Variable life is more like whole life insurance, while variable universal life is more like universal life insurance.
The Insurance Company Standard
We look for only the top-rated and financially stable Life Insurance Companies in our portfolio of carriers offering different types of Insurance.
The Brokerage Service Standard
Our business model allows us to shop multiple insurance providers without any additional costs to you. Review all comprehensive options.
