Variable life insurance

Topics:
Insurance
Tags:
Business Operations,
Corporate Insurance,
Finance,
Financial Planning,
Insurance,
Life Insurance,
Variable Life Insurance
Source:
Business Week Online

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Overview: Variable life insurance is similar to universal life insurance. As the cash value of your policy accumulates, you can modify your policy's death benefit. The two main differences between variable and universal life insurance are that 1) Variable life does not have flexible premiums, and 2)Variable life allows you to invest in riskier investments such as stocks, bonds, and mutual funds. As a result of the riskier investments, your cash value is likely to fluctuate more with a variable life insurance policy. This fluctuation means your death benefit is more likely to change from one month to the next.You may share in the upside potential, but you also share in any downside potential

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