Sentences with phrase «of a variable life insurance policy generally»

A possible disadvantage is that the premiums of a variable life insurance policy generally are fixed and can not be adjusted if your financial situation changes.

Not exact matches

Indexed universal life insurance policies generally hit that sweet spot of being way less risky and more «beginner - friendly» than variable life insurance policies, but you can also earn more with them than with regular universal life or whole life insurance.

Given this, the owner of a variable life insurance policy should generally have a higher risk tolerance, as it is possible that the value of the invested funds could fluctuate up and down regularly.

Instead, fixed universal life policies generally earn an interest rate in the cash value, while variable universal life policy returns depend on the performance of the funds offered within each policy's subaccounts, which are analogous to mutual funds, except that the insurance company owns the shares rather than the policy owner.

Because of its tax - deferred feature Variable Universal Life Insurance offers an attractive tax advantage and if your policy is highly funded, tax advantages can and generally do reimburse the cost of the policy.

Generally applicable to current assumption policies such as equity indexed, variable and universal life, cost of insurance charges are monthly charges for mortality and other elements of insurer expense that are assessed against the policy based on the insured's current age, the original rate class, and the current net amount at risk.

All insurance riders offered within variable contracts and policies fall into one of two categories; living benefit riders generally guarantee some sort of defined payout while the insured or annuitant is still alive, while death benefit riders protect against declines in contract values due to market conditions for beneficiaries.