Variable Life Insurance
Variable life insurance is a permanent life insurance that you can purchase. However, it also involves investing. Basically, it is a life insurance and an investment policy 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?
- Is it possible to turn my insurance policy into cash?
- What risks does this policy come with?
- Will I be entitled to any tax benefits?
- How much flexibility will I have?
- How will the price of insurance change over time?
SOGO Wealth & Risk Management has had years of experience helping clients navigate the insurance world. Contact us if you need help deciding if a variable life insurance plan is right for you.