Managing Multiple Funds Through A Single Variable Life Insurance
Variable Life Insurance offers cash value derived from investing a portion of the premium in various types of funds. Thus, premium from a single Variable Life Insurance can be used for investment in multiple funds to obtain cash value.
Variable Life is a permanent insurance policy that allows investment of the premium amount in separate investment funds such as fixed income investments, stock, bonds or the money market fund. Policy buyers are permitted to switch investments two to five times every year depending on the terms of the insurance provider. Unlike Universal Life, Variable Life Insurance allows complete control of the investment.
Life Insurance is of two basic types namely Term Life Insurance and Whole Life Insurance. In the case of Term Life Insurance, the amount of insurance and the policy period is chosen by the policy buyers. The Whole Life Insurance offers additional benefits of cash value along with life insurance.
Term Life Insurance is an easy to understand policy with the option of personalizing it as per the needs of the buyers. The monthly premium amounts are relatively low based on the policy period and the amount of insurance cover. The policy period ranges between ten, twenty and thirty years. The amount of insurance can start from $100,000 and go up to several million dollars.
Variable Life Insurance policy holders can switch investments without incurring any charges or taxes. Most insurance providers limit the number of such investment switches to twelve per year. The downside of Variable Insurance is the risk involved in the cash value component which depends largely on the performance of investments.
Thus, Term Life Insurance also known as Term Assurance offers financial protection equivalent to the face value of the policy. In the event of the policy holder's death during the policy period, the beneficiary receives the insured sum of money. Thus the policy period the Term Life is limited and ranges from one to thirty years.
Term Life is a perfect arrangement in the case of the premature death of the policy holder. However, it is not possible to predict the life time of an individual. Therefore Term Life Insurance is the most suitable policy cover that provides the required financial protection to the beneficiary in the event of the sudden death of the policy holder. However, individuals with a family history of premature death due to various reasons can secure themselves with the Term Life Insurance.
Variable Life is a permanent insurance policy that allows investment of the premium amount in separate investment funds such as fixed income investments, stock, bonds or the money market fund. Policy buyers are permitted to switch investments two to five times every year depending on the terms of the insurance provider. Unlike Universal Life, Variable Life Insurance allows complete control of the investment.
Life Insurance is of two basic types namely Term Life Insurance and Whole Life Insurance. In the case of Term Life Insurance, the amount of insurance and the policy period is chosen by the policy buyers. The Whole Life Insurance offers additional benefits of cash value along with life insurance.
Term Life Insurance is an easy to understand policy with the option of personalizing it as per the needs of the buyers. The monthly premium amounts are relatively low based on the policy period and the amount of insurance cover. The policy period ranges between ten, twenty and thirty years. The amount of insurance can start from $100,000 and go up to several million dollars.
Variable Life Insurance policy holders can switch investments without incurring any charges or taxes. Most insurance providers limit the number of such investment switches to twelve per year. The downside of Variable Insurance is the risk involved in the cash value component which depends largely on the performance of investments.
Thus, Term Life Insurance also known as Term Assurance offers financial protection equivalent to the face value of the policy. In the event of the policy holder's death during the policy period, the beneficiary receives the insured sum of money. Thus the policy period the Term Life is limited and ranges from one to thirty years.
Term Life is a perfect arrangement in the case of the premature death of the policy holder. However, it is not possible to predict the life time of an individual. Therefore Term Life Insurance is the most suitable policy cover that provides the required financial protection to the beneficiary in the event of the sudden death of the policy holder. However, individuals with a family history of premature death due to various reasons can secure themselves with the Term Life Insurance.
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