What You Need to Know About Variable Life Insurance?
Variable types, as it is often referred to is a type of whole term policy that offers some of the flexibility as a universal life insurance policy. The whole life term annuity aspect of these policies is that there is always a guaranteed payout when the policy is issued. It is also a type of permanent insurance that is insurance that does not have to be renewed and is usually available for the buyer’s entire life. As with term life insurance, part of the premium is invested so it can gain in value over the years. This is called cash value. The cash value can also be borrowed against if money is needed before the buyer’s death. Probably the biggest advantage of these types of policies is that they are tax exempt investments. Meaning that the money you put in to the premiums and the cash value that appreciated is not taxed until money is taken out of the policy or the policy is collected.