Are you looking for a life insurance policy that is permanent but with flexible premiums and options? If you are searching for this type of policy, then variable universal life insurance might just be the right policy for you.
A variable life insurance policy combines features of universal life insurance with several investment options, so you will be able to claim a larger amount for a death settlement than what you can receive from an ordinary policy. This is called variable universal life insurance, because the premiums and investments in this type of policy are not fixed. These are variables because both depend on the present market conditions.
Getting a variable life insurance policy has advantages over other types of policies. If you compare this to universal life insurance, you will be able to see that on the latter, you cannot control your invested cash value. But if you combine universal and variable, you can switch these investments if you want to get a higher life insurance settlement. You can do this two or three times a year.
Another advantage of having a variable universal life insurance policy is that you can have a tax shelter. This means that the money you make through investments is tax-free. This amount will only be taxed when you cash in the policy.
Even with these advantages at hand, you must keep in mind that variable universal life insurance is not for everyone. So the best thing for you to do is to consult an insurance agent and have the policy pros and cons explains to you. You must be able to understand not only the advantages of this type but the drawbacks as well.