Sentences with phrase «variable life policies»

Common forms are whole life, universal life and variable life policies.

Variable life policies allow the policyholder to adjust how the accrued cash is invested, and some types include dividend payouts of the interest earned without affecting the value of the policy.

Because insurance companies must guarantee death benefits and a minimum schedule of cash values in most policies (except variable life policies), they must be conservative when estimating the values of the various premium pricing factors (interest, mortality, expenses, lapse rates, and risk loading factors) used to compute the required premiums under any particular premium payment plan of insurance.

If staying on top of a universal life insurance policy sounds complex and tiresome than variable life policies are not for you.

A policy holder must be committed to spending time on universal variable life policies in order to manage them well and to ensure long - term success.

Variable life policies are a distinctive type of permanent life insurance that are connected to a specific earnings vehicle.

Like other forms of life insurance, variable life policies are designed to provide your beneficiaries (family, friends or even an organization) with a death benefit if you die while your policy is still in effect.

The variable universal life policy and the variable life policies are sold only by prospectus which you should carefully read.

Universal life policies and variable life policies contain an investment option.

Overall, the costs of Variable Life policies can be higher than other types of permanent policies.

But here's the crucial difference: whereas the premiums paid into most standard UL polices earn interest within a life insurance company's General Account, as it's known, Variable Life policies earn interest on a portfolio of investments that you as the policy owner choose from a selection offered by the company (key: check the selections).

Whether you are looking for term life insurance or a permanent plan like whole life, universal life or variable life policies check out a few companies before you buy.

Staying on top of a universal life policy may not be everyone's cup of tea, but variable life policies are even more complex and require you to remain vigilant.

A cash value life insurance policy (such as whole life, universal life or variable life policies) can help your loved ones» financial needs while you're still around to enjoy them.

Here's where the real catch is — variable life policies are subject to numerous fees.

Permanent life (which includes whole, universal, and variable life policies) is a mix of life insurance and an investment account that pays a benefit when you die or the built - up cash value if you liquidate it before your death.

Variable life policies are not guaranteed by the FDIC or any other government agency; they are not deposits of, nor are they guaranteed or endorsed by, any bank or savings association.

Furthermore, variable life policies tend to have rather limited investment options to choose from.

Variable life policies combine death protection with a savings account that can be invested in stocks, bonds and money market mutual funds.

The cash value feature is only available with whole life, universal life and variable life policies.

Due the their complex contract structures, universal and variable life policies can not guarantee both cash accumulation and a death benefit, although it is possible to have both, and for a beneficiary to receive both.

However, Variable Life policies allow you to choose where the money is invested such as into equity funds, a money market fund, bonds, stocks, or some combination of accounts.

Under a variable universal life contract, policyholders have numerous investment subaccounts available to them like they do with variable life policies but also have the flexibility in premium payments and frequency offered by universal life policies.

Cash values, more properly called cash surrender values (CSV), are features of permanent life insurance products that include whole life, universal life, variable life and universal - variable life policies.

Rather than growing at a set rate of interest, though, with variable universal life, the funds in the cash component are actually managed professionally (unlike variable life policies that are managed by the policyholder) in underlying «subaccounts» and can be in entities such as stocks, bonds, and mutual funds.

Permanent life insurance — also known as whole, universal, and variable life policies — is a mix of term life insurance and an investment account that pays a benefit when you die, or pays the built - up cash value if you liquidate it before your death.

Variable life policies, a form of permanent life insurance, build up a cash reserve that you can invest in any of the choices offered by the insurance company.

Variable life policies may have increasing or decreasing value based on the investments that are part of the policy.

Universal, variable and universal - variable life policies do not provide CSV guarantees.

Because term life policies may expire before death and variable life policies don't have a guaranteed face value, they don't offer the reliance needed for long - term charitable giving.

On average, Variable Life policies are more expensive than the majority of Life Insurance policies.

It can be a bit of a struggle to find a company that offers variable life policies.

Due to inherent investment risks, Variable Life policies are deemed securities contracts and are regulated under the federal securities laws.

At the same time Variable Life policies have marked differences from other permanent plans which deserve your attention.

Most variable life policies guarantee a minimum face value (i.e. minimum death benefit payout), but a guaranteed minimum for cash value returns is unlikely.

In an unfavorable market, variable life policies may end up worth less than a whole life policy would be for similar premiums.

This benefit may be found in Whole Life, Universal and Variable Life policies.

But with Variable Life policies, there's a direct link between the cash value of your policy and the performance of the portfolio of sub-accounts you choose.

Overall, the costs of Variable Life policies can be higher than other types of permanent policies.

To save on premiums, it is recommended that a company purchase term insurance versus whole or variable life policies which carry higher premiums and pay out greater commissions for insurance agents.

Variable life policies are not guaranteed by the FDIC or any other government agency; they are not deposits of, nor are they guaranteed or endorsed by, any bank or savings association.

However, Variable Life policies allow you to choose where the money is invested such as into equity funds, a money market fund, bonds, stocks, or some combination of accounts.

This limits the usefulness of variable life policies as a college savings vehicle to families with very young children.

If companies follow the regulations spelled out in the tax code, investments made within the variable life policies will be given tax - free treatment.

Withdrawals from a variable life policy may cause the insurer to move a portion of the remaining balance into a fixed - return account to minimize the company's risk.

Variable Universal Life is similar to the Variable Life policy, but offers flexible premiums instead of fixed premiums.

After that, the return will average 2.6 % per year for whole life, 4.2 % for universal life, and 7.4 % for the new - and - improved variable life policy that includes mutual funds, according to Consumer Federation of America, Kiplinger's Personal Finance and Fortune magazines.

If you own a variable life policy, you may allocate your account value among a variety of investment subaccounts.

The prospectus, which contains this and other information about the variable life policy and the underlying investment options, can be obtained from your financial professional.

Here are the basics you'll need to understand before considering a variable life policy: