Variable Choices for Varied Needs
Life insurance policies that provide lifelong protection are known by a variety of names: permanent, whole, ordinary, universal, adjustable, and variable life insurance. Under a variable life insurance policy, the cash value in the policy accumulates and can be placed in a variety of “subaccounts” with different investment objectives. The policyholder can transfer funds among these subaccounts as he or she wishes.

Term life insurance, by contrast, does not accumulate cash value. Term policies also end after a certain number of years (10, 20 or 30, usually), or at a certain age, such as 65 or 70. Term life insurance rates may therefore be lower than those for Variable Life Insurance policies.

Your Specific Life Insurance Needs
However, simply looking for a discount, or a low cost life insurance policy, may not be to your best advantage. It’s important to consider your unique needs: your age, your health, whether you have children who will attend college, whether you have a non-working spouse, and so on. The savings account that accompanies variable life insurance plans may be a great asset for your future needs.

Where you live will also be a factor. For example, New York life insurance companies may charge higher rates than those in less densely populated areas. And a variable life insurance policy purchased in your twenties may end up costing less than a term life insurance policy bought in middle age. This is why it pays to do your research.

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