How Does Variable Life Insurance Work?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA variable life policy is a form of universal life. Out of each premium payment a stated amount is withdrawn to pay the insurance cost for a period of time. The balance goes into a fund other than the company’s general fund. In the case of the universal life policy it goes into a special fund. In the case of the variable life policy it goes into a fund where the owner of the policy can select how the money will be invested.Answered on May 5, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasGreat question! The type of policy you are asking about is called a universal life policy. The difference in this kind of policy lies in the flexibility of your payments, and in its performance. Unlike a term or whole life policy that will have regular, preset premium payment amounts, the universal life policy gives (within limits) you the ability to pay a little more, or a little less on your payments. The way your premium is invested gives you some flexibility also, unlike a more mainstream policy. If you would like more details, please contact me, I'm happy to help. Thanks for asking!Answered on May 7, 2014flag this answer
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