Description: Variable life insurance is a type of whole life insurance in which the
amount of death benefits varies, depending on the performance of
investments. The insurance company places some or all of the fixed premium
payments into an investment account; some companies let the insured person
decide how the money is invested. The policyholder bears the risk of
investment losses, though there is a guaranteed minimum benefit payment. Features: Benefits:
Variable life insurance covers the insured until his death. The premium
amount is fixed and predictable. Variable insurance has interest and
dividend income from the investment account that is not taxed until it is
paid out to the policyholder.
Disadvantage:
Variable life insurance has a risk of losing value in a poor investment
situation. |
