Variable Life Insurance: Flexible Protection & Investment Growth
Combine life insurance protection with investment opportunities in a single, adaptable policy that grows with your financial goals.
Understanding Variable Life Insurance
What is Variable Life Insurance?
Variable life insurance is a permanent life insurance policy with an investment component, allowing you to allocate portions of your premium payments to a variety of investment options, similar to mutual funds.
Key Benefits
- Death benefit protection for beneficiaries
- Tax-deferred investment growth potential
- Flexible premium payment options
- Choice of investment options
- Ability to adjust coverage as needs change
How Variable Life Insurance Works
Premium Payment
Your premium is split between insurance costs and investment portions
Investment Allocation
Choose from various investment options based on your risk tolerance
Account Value Growth
Your investment portion grows tax-deferred based on market performance
Policy Management
Adjust coverage and investments as your needs change over time
Investment Options
Understanding the Risks
Market Risk
Investment returns are not guaranteed and may fluctuate with market conditions
Insurance Costs
Policy charges and fees may impact overall returns
Policy Lapse Risk
Insufficient premium payments or poor investment performance may cause policy lapse
Variable Life Insurance Calculator
Projected Value
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Death Benefit
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Total Investment
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Frequently Asked Questions
What makes variable life insurance different from other types of life insurance?
Variable life insurance combines permanent life insurance coverage with investment opportunities. Unlike traditional whole life insurance, the cash value portion is invested in sub-accounts similar to mutual funds, offering potential for higher returns but also carrying market risk.
How are my premiums invested?
After deducting insurance costs and fees, your remaining premium is invested in sub-accounts of your choosing. These sub-accounts can include stocks, bonds, money market funds, or other investment options offered by the insurance company.
Can I change my investment allocations?
Yes, most variable life insurance policies allow you to reallocate your investments among different sub-accounts, typically without tax consequences. This flexibility lets you adjust your investment strategy as your goals or market conditions change.
What happens if the investment performance is poor?
Poor investment performance can decrease your policy's cash value and potentially affect your death benefit if it falls below the guaranteed minimum. In extreme cases, you may need to pay additional premiums to maintain the policy.