Sentences with phrase «component of a variable life insurance policy»
While there is the ability to attain much growth in the cash component of a variable life insurance policy, there can also be more risk due to the market exposure.
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Policies such as variable universal life insurance combine components of the above, blending the investment flexibility of variable life with the ability to use the cash value to pay monthly premiums offered in universal life.
Just as with the cash value component of other types of life insurance policies, the funds that are in the investment component of a variable insurance plan are allowed to grow on a tax - deferred basis, meaning that the money will not be taxed until the time of withdrawal.
With this in mind, it is possible that the value of a variable life insurance policy's investment component could fall if the underlying investments perform poorly.
Eventually, your cash value will cover the entirety of your death benefit, and your variable life insurance policy will no longer have a term component.
Variable life insurance is similar to whole life insurance — a simpler form of permanent life insurance — in that it pays a tax - free sum to your beneficiaries if you die, and in that it contains a long - term savings component called the «cash value» of the policy.
To put it simply, variable universal life insurance is a policy that allows you to build cash value inside of the policy and also has an investment component to the plan.
Once you understand the major components of ordinary life insurance, you'll know we're speaking of products like universal life insurance, indexed universal life insurance, variable life insurance, and whole life insurance (including survivorship policies).
Just as with the cash value component of other types of life insurance policies, the funds that are in the investment component of a variable insurance plan are allowed to grow on a tax - deferred basis, meaning that the money will not be taxed until the time of withdrawal.
One of the most misunderstood types of policies is a variable universal life insurance plans, there are several different components of the insurance policy that you should be aware.
Like any variable life policy, variable survivorship life insurance has a cash value component in which a portion of each premium payment is set aside to be invested by the policyholder, who bears all investment risk.
As with other types of permanent life insurance, a variable universal life insurance policy will also allow the policy to obtain the benefit of tax - deferred growth within the cash component.
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Policies such as variable universal life insurance combine components of the above, blending the investment flexibility of variable life with the ability to use the cash value to pay monthly premiums offered in universal life.