Most people don’t know that life insurance doesn’t just come in one flavor. There are many options available to you that give you the chance to give your loved one’s financial security. One such option is a variable life insurance policy.
What’s the Difference Between Variable and Universal?
Just like a universal life insurance policy, variable insurance policies provide coverage for your whole life, and offer a death benefit – i.e., money is paid out to your beneficiaries in the event of your death.
The difference, however, lies in the fact that variable life insurance gives you the opportunity for higher returns. Instead of a fixed interest rate, a variable insurance policy’s interest rate will fluctuate as the market changes – and while it can lose value, it also allows for the return to represent market conditions at the time.
By offering a combination of a death benefit and cash value – with its exposure to underlying investments – variable life insurance policies offer you and your loved ones the chance to see cash value accumulation.
Before you go jumping in, however, our team at SOGO Wealth & Risk Management will walk you through all the potential downsides. For instance, while the policy can offer a higher return, the policy owner will also bear the investment risk, and a loss of principal, depending on market conditions.
Get in touch today, and one of our friendly and experienced team members will be delighted to talk to you about your options and offer you reliable and honest advice.
Variable universal life insurance is a type of permanent life insurance that provides coverage for life. Like universal life insurance, variable universal life insurance has a death benefit, which is the money left to your beneficiaries, along with a cash value component. Within certain guidelines, you have flexibility with your premium payments.