Accumulated Indexed Universal Life
Anyone who is looking for a life insurance policy that delivers death benefit protection along with the opportunity to develop long term accumulation of cash value can take a look at accumulated indexed universal life insurance policies. When it comes to this life insurance policy, you will notice how your are experiencing a growth in the cash value, which is needed for the future.
Benefits of getting an accumulated indexed universal life insurance policy
One of the key benefits that come along with accumulated indexed universal life insurance policy is that you can receive flexibility with premiums. For example, you have the chance to increase premiums or decrease premiums along with time. This would help you to take care of other expenses in a convenient manner. You will also receive death benefit flexibility with it. In case if you need to change your life insurance protection in the future, this will be a good option to consider.
On top of all these benefits, the most prominent benefit is that it would result in the accumulation of cash value along with time. Therefore, you will be able to use cash for many other purposes. For example, you can have enough money to cover up college education expenses of your child. Or else, you can have enough money to support your retirement.
Variable life insurance
Variable life insurance is relatively expensive. However, it is a great insurance policy available for you to consider. That’s because you have all the freedom to use the cash value and proceed with investment. In other words, you will not have to look for money to invest because you have the chance to utilize the cash value amount and proceed with your investments. This will help you to add more value to your investment portfolio.
How does variable life insurance works?
The death benefit you can get along with variable life insurance policy is significantly higher when compared to other life insurance options available out there. You will need to keep on making premium payments as you would do in any other insurance policy. However, the amount that would go to the account is much lower because fees will be taken out of it for administrative work. In here, the money you have in the account will be invested through a series of investment options. These investment methods usually include mutual funds, which you can select.
Apart from investments, you will have the freedom to allocate a part of the premiums to a fixed account. This will be pretty much similar to a mutual fund. It would pay a fixed interest rate as well. Your insurance company would reset this rate on a regular basis. However, you will be receiving a guaranteed interest of at least 3%.
What can you get with variable life insurance?
The variable life insurance policy would make a lump sum payment to the beneficiaries in the form of death benefit. Along with that, you will also be able to use the cash value for other investments. For example, it is possible for you to get more interest on your cash value by going for investments. You just need to take a look at the investment opportunities available out there and proceed. However, you will have to keep in mind that it comes to you with the risk of traditional investments as well.
Exchanging the variable life insurance policy
You will have the freedom to exchange your variable life insurance policy with another one. You can discuss this with your insurance company. You can compare the old policy and new policy to go for the best option. It is also important not to cancel the old policy until you get hold of the new policy, so that you can make sure that there is no gap in your life insurance policy.
Variable universal life insurance
Variable universal life insurance would be another permanent life insurance policy available for you to consider. It comes to you along with an in-built savings component. This savings component will provide you the chance to invest money on the cash value. This is quite different from traditional life insurance. That’ because you will be having a flexible premium. You will also have to deal with a minimum floor and maximum cap on the return that you can get out of your investment as well.
How does variable universal life insurance work?
When it comes to variable universal life insurance, you will be able to invest your cash value based on the subaccounts. This is quite similar to a mutual fund. It will be exposed to the market fluctuations, and you will have the possibility to secure getting amazing returns. You will be able to enjoy growth potential and flexibility along with your variable universal life policy. However, you should be mindful about the risk before you purchase.