VARIABLE LIFE
The most important component of the variable universal life insurance policy is your ability to direct where net premiums are invested. Once the costs for insurance protection and company expenses are met, the balance of the premium goes directly into investment options selected by you. Typically you can select from professionally managed sub accounts that invest in:
- Growth stock
- Bonds
- Balanced portfolios
- Real estate investments
- Money market accounts
With this type of policy, the opportunity to choose the investment sub accounts that match your overall financial goals and tolerance for risk.
The ultimate value of your account, either at death or at retirement, will depend upon the performance of the investment options chosen. A variable life insurance policy provides no guarantee of either interest rate or minimum cash value.
As with other permanent life insurance contracts, you can borrow against the cash value of the policy however this will lower the cash value and death benefit. The value of the sub accounts will fluctuate in value based on market conditions such that it is possible to lose principal.
Contact us today to see if variable life insurance would fit into your financial plans.
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