Variable Life Insurance

Variable Life Insurance is a permanent life insurance that you can purchase. However, it isn’t just a life insurance policy. It also involves investing. Basically, it’s life insurance and an investment policy all rolled up in one. Your insurance company handles all of your investment accounts, but you still need to understand what you are paying for. Here are some key components of Variable Life Insurance:

  • Stocks and bonds
  • Mutual funds
  • Equity funds

Variable Life Insurance policies generally cost more, because of everything they entail. However, they also pose a larger risk. The money available to you will depend on how well your investments are doing.

Make sure to ask your insurance company these questions before deciding if Variable Life Insurance is right for you:

  • Who will receive my life insurance money?This is one of the most important questions you need to ask with any life insurance policy. Upon your death, your life insurance policy will be paid to your beneficiary. Things gets a little trickier if you have not named a beneficiary. Make sure to iron out all of these details with your insurance company as soon as you purchase a policy.
  • Is it possible to turn my insurance policy into cash?You may be able to cash out part or all of your insurance if you need the money before you die. This is especially true for Variable Life Insurance policies, since they involve a variety of components. Contact your insurance agent or the professionals at SOGO if you have any questions about how you may be able to cash out your insurance policy now.
  • What risks does this policy come with?Every investment comes with risks. Your insurance company won’t be able to tell you exactly how much they think you may stand to lose or gain every quarter, but they may be able to give you some insight into current trends. You won’t lose your initial investment, but don’t take these risks likely.
  • Will I be entitled to any tax benefits?Variable Life Insurance policies usually come with tax benefits. You will have to talk to your insurance company to find out exactly what you stand to gain from their policy. Don’t forget to look into these benefits.
  • How much flexibility will I have?Another good thing about Variable Life insurance policies is that they come with flexibility that other policies do not. You will be in close contact with your investors. That means you will have more say in how your money is invested. Contact your insurance company if you have any questions about changing one of your investment options.
  • How will the price of insurance change over time?You will gain permanent life insurance through a Variable Life Insurance policy, but you can’t expect your life insurance rate to stay the same throughout your entire life. How much the price of your insurance changes over time will depend on your insurance company. However, the prices shouldn’t jump beyond reason. Often the change is minimal, but constant.

The professionals at SOGO have had years of experience helping clients navigate the insurance world. Contact us if you need helping deciding if a Variable Life Insurance plan is right for you.