variable life insurance

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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.

References in periodicals archive ?
Variable life insurance policies are offered by prospectus only.
The key differentiator with a term life insurance policy compared to whole life insurance, universal life insurance and variable life insurance policies is there is no cash accrual or investment component.
Tax advisers are already familiar with the use of variable life insurance policies, which allow policyowners to invest the policy's cash value in various mutual funds.
Anyone who sells variable life insurance policies or variable annuities is required to have an NASD license, along with an insurance license.
Initially, it will sell investment-oriented products for individuals known as variable life insurance policies but the product line will be expanded to cover medical and casualty insurance products, Mitsui Mutual said.
Similarly, the cash value of whole life and variable life insurance policies is not included on federal financial aid forms.
Products offered through Brokerage are underwritten by Transamerica Life Insurance Company (TLIC) or its affiliated insurance companies and include term, universal, index and variable life insurance policies, as well as long term care insurance and other protection products.
For more information about First Investors Life variable life insurance policies, you may obtain a free prospectus by contacting your Representative or calling (800) 832-7783.
Under that scenario, each business owner must agree to the overall investment approach for the funds within the variable life insurance policies.
Nicos Life, one of the smallest life insurers, has been selling mainly investment-oriented variable life insurance policies in addition to term insurance, as well as medical insurance policies, but has failed to expand its operations as planned because of the prolonged recession.
Moody's Aa2 (Excellent)/Stable rating also applies to The Guardian Insurance & Annuity Company (GIAC), the Guardian subsidiary that issues annuities, variable life insurance policies and funding vehicles for 401(k)s.

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