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When making a decision about an investment I would always reccommend you look at guarantees! Whole life....Guaranteed. Variable Whole Life.....? If you are going to make investments in variable then why would you not buy Mutual Funds? You still need life insurance for protection and as a plan of completion, I would just look closely at Variable. EVERYONE needs whole life.
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%REPLIES% Answer Variable life insurance differs from whole life insurance and universal life insurance in that policy owners direct …the distribution of their premium payments among several different accounts or funds rather than of the company's choosing. Typical account choices are: common stock, bond, mortgage, and money-market accounts. With a variable policy, the death benefit and cash value benefits vary in relation to the value of the investments underlying the policy. If the value of the accounts increases, so will the benefits; if the value of the account decreases, so will the benefits, subject to a minimum guarantee. Variable life insurance is more risky to the policy owner than the other forms of cash value insurance, but there is a possibility of greater returns. In fact, variable life insurance is so much like "normal" investing that agents offering it must be licensed securities dealers and registered with the U.S. Securities and Exchange Commission. For Insurance � a free service that connects consumers with insurance agents and policies � recommends that variable and variable-universal policies are most suitable suitable for long term obligations and those who are more active investors and for estate growth and death tax liquidity. Answer In Response to Chris' prior response. "Variable" means it is not a fixed account, but in subaccounts directed according to the policy owner's wishes. These subaccount include, but not always, popular funds like the ones offered by Fidelity Investment. They all have there field of investments. Some are Blue Chip stock funds, Over-seas funds and even more simple Government Bond funds. Money Market is a choice. The choices can be endless and the owner picks % of the net premium paid after expense to go to each Sub-Account. Your Death Benefit will stay the same if you choose the Level Death Benefit option. Your benfit will be payable as long as premiums are paid and there are funds in the accumulation account connected to the subaccounts. You can also choose an Increasing Death benefit that includes the Face ammoun, the amount of insurance on your life, plus the value of your funds. You have choices but get a good agent licensed to sell Variable Contracts. he will need his Series 6 and usually series 63 securties license.
Variable universal life insurance combines the flexibility of auniversal life insurance with the investment account features of avariable life insurance. Like variable life in…surance, variable universal is considered asecurity. It can only be sold by agents who have passed theNational Association of Securities Dealers (NASD) exam. Answer Variable life insurance allows you to control your portfolio ofinvestments that is part of the cash value component of a wholelife insurance policy. This could include stocks, bonds, or funds.As a result of this freedom, this is the most expensive type ofinsurance available in the market. Opt for such a policy only ifyou are completely confident about investing in the markets. Whilethe risks may obviously be higher as there is no guarantee on yoursavings, the value benefits are also much more than any otherinsurance policy available. Answer Variable Universal Life insurance is permanent life insurance thathas a cash value feature in it. The cash value is invested in asmall selection of portfolios. Since it is invested, there is noguarantee interest and it may lose value. When you pay yourpremiums, you are paying for three things: The insurance, the cashvalue, and investment fees. If you know anything about mutualfunds, mutual funds have their own annual operating expenses. Sincethese mutual funds are invested in a life insurance policy, you arepaying more than 5% of annual expenses. Therefore, you will get alow rate of return on your cash value. Every year, the cost of the insurance goes up. The insurance partof the policy is annual renewable term. That means more of yourpremiums is going to the insurance and less toward the cash value.Eventually, you will have to pay higher premiums in the future. Ifyou don't, the policy will eventually lapse as the cash value isdepleted.
Fees are higher in a Variable annuity than they are in say a fixed Index Annuity.
You can but make sure it is the correct thing to do. Once cashed it you can never get it back. Depending on your age (over 45) and the policy value, you may get more mon…ey by selling it to a life settlement company. You can call 866-670-8189 for more information.
Whole life insurance varies in cost just like term insurance. The additional factor that goes into whole life's cost is that there is cash accumulation and it the extra money …that goes toward that. There is no way to say exactly how much it is but I will give one example. Female in her mid 30's can buy a 1,000,000 polcy for around $60/month for 30 years. That same amount as a whole life would be $470/month. There are reasons for each type of policy but Whole will almost always be more expensive than term insurance, unless there are health conditions and then, sometimes it is close in price.
Whole life insurance is not necessarily bad but it may not be right for you as it can be substantially more expensive than a term insurance. If you need life insurance but don…'t want to pay the high premiums on whole life insurance ask for term insurance quotes. Whole life insurance is a level premium from the time you get the insurance until you die which is good if you have an estate that will need liquid funds but not necessarily right for someone who is just looking for life insurance until their kids are grown or their mortgage is paid off
A Vanguard variable annuity does seem be a good investment in the current market. As with any investment, there are no guarantees of profitable returns.
Saga Insurance is a good investment. Seniors and older people may find that a fixed income investments comes with less financial risk. It allows them to have a fixed monthly i…ncome, perfect for retirement.
Term insurance is written for a specific period of time or until an age certain (the term). It may be for 1 year, 5 years, 10 years or it may be until age 60, 65, 70, etc. At …the end of the term the insurer may cancel the policy, raise the premium, reduce the benefit, or some combination of these. Some policies are guaranteed renewable by the insured but always at a higher premium or smaller benefit. Whole life insurance lasts your whole life. The monthly premiums are higher at the beginning but remain level (no increase) throughout the premium paying period. Because of the reserve which is built up inside the whole life policy the insured has more benefits such as cash value, policy loans, paid-up insurance, or extended term coverage.
A whole life insurance is also referred to as "permanent insurance". Unlike term insurance, which stays in effect for a stated period of years, whole life, based upon the accu…mulation of cash value, can stay in force permanently. "Cash value" may be thought of as small savings account within the policy, although do not conduse it with a real savings account. Every premium paid goes to offset the indemnity (death) benefit, and some goes into the cash value "account" The cash value accumulates slowly at forst, but faster the longer the policy has been in force. At some point, premiums may not have to be paid as the policy becomes fully "paid up". This does not happen with term insurance. When there is a sufficient amount, the cash value can also be withdrawn ("borrowed") from the policy. It does not have to be paid back, but interest accrues on it. Therefore, if enough time elapses, the amount of the policy loan plus accumulated interest can signifiantly reduce the amount of the death benefit.
Life insurance is not an investment. It shouldn't be thought of as an investment. It's a financial product that pays a death benefit. There's choices on how you can finance th…is product. Some brokers will tell you that life insurance is a great savings tool due to cash value buildup. In most cases, cash value is simply your prepayment of future premium payments. Some people will add money to their life insurance policies up and above the cost of future premiums so they can use the policy as a tax-favored place to park extra dollars. But that's more of a tax strategy than an investment.
The is more than one kind of life insurance. Term life insurance expires at the end of its term period and is not an investment. Its sole purpose to provide protection for you…r dependents against the possibility that you will die and no longer provide support for them. Whole life insurance is an investment and provides the benefits of term insurance along with a savings plan, at an added cost. Eventually it is paid off , provides insurance and has a cash value. There are many options available.
No life insurance is a solid investment. Life insurance is a valuable tool, but it's an EXPENSE. Whole life insurance is a pricey expense. It's great for the insurance company…, great for the agent that sells it to you but lousy for you as the end buyer.
To get quotes from multiple companies, one could get quotes and purchase whole life insurance at Select Quote. Otherwise, it may be best to try the websites of the insurance …companies, such as Met Life and State Farm.
Life insurance in Halifax, Nova Scotia, is considered a good investment by experts. For those wishing to have this type of insurance Halifax Life insurance provides excellent …rates and services.
Variable life insurance is a form of life insurance which protects the beneficiary upon death. The main advantage to this type of life insurance is that this insurance allows …for many investing opportunities whilst the earnings being tax free.
Whole life Insurance Plans has many benefits such as they give a cover up to 99 years of age. The policy holder can participate in that company's profit through increase i…n Sum Insured. Also, the cash value will be the same as or more than the total premium paid by insured at year 8 of policy.