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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. 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.

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โˆ™ 2009-03-26 04:40:25
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โˆ™ 2010-02-22 22:30:47

This is a type of life insurance whose value is invested in the Stock Market. Therefore, if the market is perofmring well, you'll get more for your premiums.

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Related questions

Do you need a security license to see variable universal life insurance?

Yes. To sell variable universal life insurance you will need a Series 63 Securities License, a variable life insurance license, and a regular life insurance license.


Where can I get variable annuity life insurance?

To get variable annuity life insurance speak to you local insurance company. A lot of insurance companies now offer many types of insurance; car, life, renter's, etc. Metlife, Pacific Life, Mutual, and many others are examples of where you can get variable annuity life insurance.


Is a variable life insurance policy a good idea?

It depends on what your insurance needs are. You can use the calculator here to see if variable life insurance is right for you http://www.lifehappens.org/life-insurance/life-calculator


How does one get variable term life insurance?

One can get variable term life insurance from Alison Insurance. One can also get it from companies like Allied insurance, American Family Insurance, Met Life and many more.


Where can I find information on variable life insurance online?

Numerous websites carry information about variable life insurance. You can start by looking at major life insurance carriers like Farmers.com


What is variable annuity insurance?

Variable annuity insurance is insurance that has a variable year to year and it can change upon facts that change such as your base description of how you manage your life.


What are the characteristics of variable life insurance?

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.


Where can one find information on variable life insurance?

Most insurance websites provide information on variable life insurance. Information regarding variable life insurance can be found on the Prudential website as well as the Nationwide website. The site Investopedia also offers a lot of information regarding this type of insurance.


What insurance policy is exempt from the life insurance policy illustration guidelines?

variable life insurance exceeding 10,000 dollars.


Can variable universal life insurance be converted into a fixed account?

Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.


What are some highly rated insurance companies that offer variable universal life insurance policies?

Variable life insurance is a smart investment for you and your family. Two of the more reputable providers for this type of insurance are Metlife and Nationwide.


What has the author Gary H Snouffer written?

Gary H. Snouffer has written: 'Life insurance agent' -- subject(s): Life Insurance, Life insurance agents 'The Sales & Marketing Guide to Variable Annuities' 'Variable Life Essentials' 'Property & casualty insurance agent' -- subject(s): Casualty Insurance, Property Insurance


What is special about variable universal life insurance?

What's special about variable universal life insurance is that it builds cash value. You can read more about this type of insurance online at the Wikipedia website. Once on the page, type "Variable universal life insurance" into the search field at the top of the page and press enter to bring up the information.


Four Types Of Permanent Life Insurance?

universal variable universal whole variable whole


When was Variable Life Insurance first introduced in the US?

1966


Who owns the variable annuity life insurance company?

AIG


What does it cost to borrow from a variable universal life insurance policy?

the interest rate is stipulated in writing in the life insurance policy


What policies are offered by General American Life Insurance?

There are many policies offered by General American Life Insurance. These include the Variable Life Insurance policy, the Condo Insurance policy and the Boat Insurance policy.


What types of insurance does Allianz offer?

Allianz is a life insurance company. They offer fixed life insurance, but not term life insurance. They also offer fixed, fixed indexed, and variable annuities.


What products are offered by agents under life insurance?

Typical products offered by agents in this market include: whole life products; term products, such as universal, variable, and universal variable life insurance; and annuities


Is the variable annuity life insurance any good?

Variable annuity is good for a person looking for long term invesment options if they are wanting to retire in the future. It is a great option for that, but it may not be the best option for a life insurance policy. However, there are some reliable variable annuity life insurance companies like Valic.


Can a life insurance policy own a variable annuity?

No. These are two different animals. There are variable life insurance policies as well as variable annuities. These are often tied to the results of certain type of mutual funds or stock indexes but they are separate contracts.


Is Variable whole life insurance a good investment?

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.


What is an insurance 215 license?

It's the Florida insurance license that allows you to sell Life Health and Variable Annuity insurance in Florida.


What products does Prudential life insurance offer?

Prudential offers a variety of life insurance policies. Some of the different life insurance policies that they offer are Term Life Insurance, Universal Life Insurance, Variable Life Insurance&as well as Survivorship Life Insurance. bAlong with these different types of policies they also offer retirement planning, annuities and long term care insurance.