VARIABLE LIFE INSURANCE

What is variable life insurance?

Variable life is permanent insurance, which allows you to invest a portion of your premium in various subaccounts. The policy owner can choose among several subaccounts, each of which has its own investment strategy, and invests the money in stocks, bonds, money market, or other securities in order to build your policy's cash value. However, because the performance of these investments is not guaranteed, there is an element of risk.

Why would I want it?

You want to ensure that your family will have the money necessary to live in comfort, purchase a home, pay for college, and so on, should something happen to you. At the same time, you want flexibility and control.

You want a policy that's permanent and accrues cash value, which you can borrow against for any purpose. You want to be able to borrow or withdraw funds from your account on a tax favored basis, which you can do in most cases - provided your policy remains in force. You want the option to add to your account value by paying an amount above your regular premium. You want the potential to earn a higher rate of return on your account investments, even though your rate of return could also drop.