Reader’s Question:

A life insurance agent here in San Antonio, Texas, got me very interested into a variable life insurance policy but can you tell me more about it?

Hubert

San Antonio, TX

Variable Life Insurance is a kind of long-term or permanent life insurance policy that allows policyholders the ability to control where their money is invested. It would be very advantageous for someone who is wishing to a variable life insurances policy to at least have a working knowledge on how the stock market (as well as bonds, equities) works.

This is a form of permanent life insurance policy that comes with a cash-value feature that earns growth through interests since the life insurance company will use it as their investment money or investment capital, although most other types of permanent life insurance also have cash-value features, what’s unique about variable life is that you are able to dictate where specifically your money is invested, how much premiums you will pay annually and how many times you can move your investments around. The obvious disadvantage of this is that not everyone might be able to understand the volatility of investment markets enough to avoid bad investments and might end up losing money and lowering their policy’s cash-value.

Before buying this kind of policy there in San Antonio, Texas be sure to take some time and let a life insurance agent or broker (or some other financial professional) explain what to expect with this policy. Also see if they will provide support to their policyholders deciding which investments to choose from.

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