Variable Life Insurance

Investing your insurance: Variable life insurance

Variable life insurance is a variation of Whole Life Insurance. Much like the normal whole life insurance, variable life insurance also has a death benefit and a cash value. However, they will both be directly related to the performance of the investments made with the premiums. Because of this, the policy holder has much more control over the investments made. This makes variable life insurance so much like regular investing that dealers of variable life insurance must be authorized security dealers recognized by the US Securities and Exchange Commission. Although there is usually a minimum amount guaranteed to the policy holder regardless of the performance of the investments, it is significantly less than that of a normal whole life insurance policy.

If you want total control over the performance of your investments and are confident that you can greatly increase your death benefit and cash value with that control, then variable life insurance is a viable option for you. However, most average people would rather leave the investing in the hands of professionals and have a guaranteed cash value. It all depends on what you want to do and the confidence you have in yourself. Variable life insurance has the potential to greatly out perform normal whole life insurance, but also has a risk just as great.

For more information on variable life insurance and if it's right for you, try the resources we've provided below.

And also be sure to check out our pages about Term Life Insurance, Whole Life Insurance, Cheap Life Insurance, and Globe Life Insurance elsewhere on this site.