Variable life insurance policy

Variable life insurance policy

A whole life insurance policy that provides a death benefit dependent on the insured's portfolio market value at the time of death. Typically the company invests premiums in common stocks, so variable life policies are referred to as equity-linked policies.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The court's decision shows that simply including restrictive language in a variable life insurance policy contract that prohibits all communications between a policyowner and investment manager regarding the selection of specific investments within the underlying account is not sufficient to prevent the policyowner from being treated as the owner of the underlying assets if he or she fails -- directly or indirectly -- to adhere to these restrictions.
The three trusts are the owners and sole beneficiaries of a $20 million individual variable life insurance policy on Scooter Stuart.
Carolyn McGowen purchased a variable life insurance policy on her life for a single premium of $500,000 in 1986.
A Variable Life Insurance Policy Performance section would set rules for communications presenting variable life policy performance data and illustrations of how the policy might perform in the future.
Question--Does the sale of a variable life insurance policy raise any special concerns or risks?
Raiford priced a $1 million variable life insurance policy for a healthy 40-year-old man in New York.
This tool uses Monte Carlo simulations and evaluates the probability that a variable life insurance policy will mature according to expectations or disappear before the client's eyes.
We have two favorites: a variable life insurance policy inside a voluntary employee beneficiary association (VEBA) and a 401(h) plan.
A variable life insurance policy is a security, and the sale of such a product in the secondary market is a securities transaction subject to NASD rules.
For example, in reminding regulated persons of their duties regarding suitability, the Notice states, "[the sale of an existing, in-force] variable life insurance policy is not necessarily suitable for a customer simply because the settlement price offered exceeds the policy's surrender value." The Notice states that the seller may have a continued need for coverage and should fully understand the tax and other implications relating to a replacement life insurance policy if the transaction contemplates a replacement for the policy sold.
The first thing Jones had the Jacksons do is take out a variable life insurance policy. A variable life insurance policy has wealth accumulation and protection features.
You may also want to consider taking out a variable life insurance policy. Variable life policies are more expensive and have some investment risk, but there are conservative investment choices available within them.

Full browser ?