A variation on whole and universal life is a variable life insurance policy.Under the terms of this form of insurance, you maintain a cash value from which your term insurance premiums are paid. What makes this type of policy different is that the cash value is invested in mutual funds. The amount of your death benefit is tied to the mutual fund’s performance.
Typically, you have the choice of investing your cash value in a common stock mutual fund, a bond fund, a money market fund, or any combination of funds. You maintain the control. With some variable life insurance policies, you can change funds, but you’re always investing in the insurance company’s funds. The success of these funds depends on how successful the insurance company’s investment managers are.
Typically, you have the choice of investing your cash value in a common stock mutual fund, a bond fund, a money market fund, or any combination of funds. You maintain the control. With some variable life insurance policies, you can change funds, but you’re always investing in the insurance company’s funds. The success of these funds depends on how successful the insurance company’s investment managers are.
No comments:
Post a Comment