By Peter Crump
If permanent insurance with flexible premiums and options isimportant to you, you’ll want to choose a variable universallife insurance policy. This type of policy combines features ofuniversal life insurance with investment options, so you havethe potential for a larger death settlement than you would havewith an ordinary policy. It is called a variable universal lifeinsurance, because your investments and premiums are not fixed.They are variable because they depend on the current marketconditions.
Variable universal life insurance has advantages over other lifeinsurance policies, such as Globe Life Insurance or whole lifeinsurance. With this type of life insurance you get to play thestock market and choose the investment funds where you want toput your money. With universal life insurance on its own, youcan’t control how your cash value is invested. When you combineit with variable life insurance, you can switch investments twoor three times a year if you wish to get a higher life insurancesettlement.
As with 30 year term life insurance and others, you do have aguaranteed death benefit. This amount could rise drastically ifyou have the right investments with a variable universal lifeinsurance. The amount of the cash settlement varies, so that youcould have lots of money one day and the minimum life insurancesettlement the next.
The life insurance cost associated with variable universal lifeinsurance is higher than other types. However, along with thiscomes the advantage that you have a tax shelter. The money youmake through investments will not be taxed until you cash in thepolicy. The monthly premium you pay also varies, depending onmarket conditions. This may not appeal to you if you are on afixed income and have to budget for the premiums.
Variable Universal life insurance is not for everyone. If youwant to make sure that there is a death benefit to protect yourfamily in the event of your death, then maybe you should look ata 30 year life insurance or ask for a whole life insurancequote. This way your money is guaranteed and you don’t run therisk of losing it. The way market conditions are operatingtoday, the many falls seem to indicate that the cash value ofthe life insurance policies are falling as well. It’s better tobe safe than sorry.
Variable universal life insurance gives you choices.
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