Variable life insurance investment

Accelerated death benefit —pays a portion of your death benefit while you are still alive if you are chronically or terminally ill. These fees cover services you request. These charges may be more significant if you present a greater risk to the insurance company that is, if you are more likely to die sooner. Different policies have different features. This bulletin provides a general description of variable life insurance. Insurance companies or your financial professional may make personalized illustrations available for certain policy features. If the investment options you selected for your policy perform poorly, you could lose money, including your initial investment.

Variable life insurance is a permanent variabld insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. A sub-account acts similar to a mutual fundexcept it’s only available within a variable life insurance policy. A typical variable life policy will have several sub-accounts to choose from, with some offering upwards of 50 different options. The cash value account has the potential to grow as the underlying investments in the policy’s sub-accounts grow — at the same time, as the variable life insurance investment investments drop, so may the cash value.

Variable life insurance is a permanent life insurance product with separate accounts comprised of various instruments and investment funds, such as stocks, bonds, equity funds, money market funds, and bond funds. Because of investment risks, variable policies are considered securities contracts which have regulation under the federal securities laws. Variable life insurance policies have specific tax benefits, such as the tax-deferred accumulation of earnings. Provided the policy remains in force, policyholders may access the cash value via a tax-free loan. However, unpaid loans, including principal and interest, reduce the death benefit.

Insuramce cancellation, you will typically receive a refund of your premiums. The policy has a cash value account, which is invested in a number of sub-accounts ijsurance in the policy. It contains important information about the variable life insurance policy, including fees and expenses, investment options, death benefits, and other features. Things to consider: You should consider your insurance needs, investment goals, and your tax situation. Policy loans unlike withdrawals are not generally considered taxable events.