Variable Life Insurance

Variable life insurance tweaks the provisions of whole and term life insurance policies.

The Function of Variable Life Insurance
With variable life insurance, you have control over investment opportunities, and your decisions directly affect your cash value portions. These portions are placed into the sub-accounts (stocks, bonds, etc.) that you select. The premiums are a constant amount throughout the life of the policy, and the results of your allocations become apparent in your returns.

Variable Life Insurance vs. Variable Universal Life Insurance
If you choose variable life insurance, you are choosing to pay a fixed premium over time, whereas a variable universal life insurance policy allows you to change the premium to suit your needs. A fixed premium is beneficial because you know that the premium will always remain the same, and so will your death benefit. Even if your sub-accounts do not live up to expectations, your death benefit and premium amount will not suffer. Unfortunately, with a variable universal life insurance policy, you will need to readjust your premiums if you want to benefit from your investment.

Remember...
A financial expert may help by giving you tools and information needed to help protect your future.

Please ensure that you diligently read the prospectus, which accompanies mutual funds. This gives you a clear idea of the factors (objectives, expenses, and risks) involved with the funds themselves. A financial professional can better explain the details.

This information is presented to educate the reader and does not constitute professional tax and legal advice.

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