Variable Life Insurance - What You Need To Know
Variable life insurance is one of the less common types of life insurance, but when you research different types of insurance for your family, it is worth looking into. Getting a variable life insurance quote is a smart move, since there are several benefits you can only get with this type of insurance.
What Are The Benefits?
This type of policy is called variable because you can take part of your premium - the money you pay into the policy yearly or monthly - and allocate it toward investments that fall within your company's portfolio. In this way, you decide to use some of your premiums more like a mutual fund than a straight payment. The benefit of this is that when your investments begin to pay dividends, you can apply those dividends to your premiums. You are doing two positive things in this case: you are increasing the value of your insurance policy and adding to your family's protection, and you are saving your family money here and now by lowering what you pay in premiums.
What Are The Risks?
Of course, investments are risks, and the down side of a variable life insurance policy is that your investments might produce losses, rather than dividends. If that happens, your premiums remain the same, but the ultimate value of your coverage will decrease. Fortunately, with a variable policy, only part of your premiums is invested, the other part contributes to a straight pay in-pay out policy, guaranteeing that your family will be protected if you die.
How Do I Begin?
When doing your research, you can get a variable life quote from two primary sources. This will help you get as much information as possible before you make your final decision. There are two main sources for a variable life quotes.
The first source is your insurance agent. You can go to his or her office and discuss your options and the best way to get the coverage you need for your family. If you are well-informed enough to ask about this type of quote, you may find that it is a good option for you. If you do decide on this type of insurance, your agent should provide you with a prospectus, because it is not only an insurance plan, it is an investment account.
The other way is to use a free service like ours that makes it fast and easy to to obtain and compare variable life insurance quotes. To begin, just enter your Zip Code into the box below...