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Variable Life Insurance

   Also found in: Acronyms 0.01 sec.
Variable Life Insurance
A whole life insurance policy in which some, or all, of the premium is allocated to a separate account, which is invested in common stock. If the common stock portfolio does well, the death benefit increases accordingly; if it performs poorly it decreases, though all variable life insurance policies have a benefit floor. A significant advantage to a variable life insurance policy is the fact that the policyholder does not have to pay taxes on earnings from the portfolio until it is cashed in, usually through death. In the United States, variable life insurance policies are considered securities contracts and, as such, they are regulated by federal law.

variable life insurance
Life insurance that relates benefits to the value of a separate investment account underlying the annuity. This insurance is designed to prevent erosion of benefits by inflation. The size of the benefits will vary.

Variable life insurance. Variable life insurance policies are cash-value policies that allow you to choose how your premium is invested from among a package of alternatives offered by the insurer.

In many variable life policies, the face value of your policy depends on how well the investments you've chosen are performing.



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VARIABLE LIFE INSURANCE Variable life insurance is suitable for younger, risk-tolerant investors because it includes a more volatile mix of mutual funds, bonds, and stock investments and does not offer a guaranteed return.
New York, has introduced a rider to its whole life insurance product line that adds variable life insurance to a base whole life policy.
6%), variable life insurance deserves another look from CPAs and their clients.
 
 
 
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