Variable Universal Life Insurance
For years there were two types of life insurance, term life and whole life. And while that is still basically true, you may be pleased (or horrified) to learn that you now have several additional sub-options when it comes to getting whole life insurance quotes.
For example, instead of just looking for a term life insurance quote or a whole life insurance quote, you now have the option of looking for a variable universal life insurance quote.
So what exactly is variable universal life insurance?
Basically it’s a whole life policy, which means once your premium is established it never varies throughout the life of the policy – and the policy stays with you for your whole life, regardless of how long you live.
The difference between a standard whole life insurance policy and a variable universal policy is in how hands-on you are allowed to be when it comes to directing how your cash-value dollars are to be invested.
When you are getting quotes for life insurance rates, either online life insurance or from a traditional brick and mortar insurer, you must decide whether you want to look at term life insurance quotes or whole life insurance quotes – and one of the differences between those two kinds of life insurance is that a whole life policy builds cash value over time (in a forced savings account) while term life insurance builds no cash value.
Once you have cash value in your whole life insurance policy then it is necessary for that cash to be invested somewhere. In the old days the insurance company made those investment decisions without consulting the policy holder (that’s you), but times are changing.
If you opt for universal variable life insurance then YOU will be able to choose where your cash will be invested from among a number of mutual funds that the insurer recommends. This means that YOU have some control over how much money your “spare” cash makes.
Another advantage to a variable universal life policy over a standard whole life insurance policy is that you have the option of occasionally missing a premium payment – or of even paying extra so that you have more accrued cash to invest.
Another advantage to the variable universal life policy is that on death the policy pays the face value of the policy (as any traditional life insurance does) but it also pays out the money earned on the cash value of the policy to the beneficiaries.
If wise investment decisions are made during the life of the policy, there is the potential for the beneficiaries of such a policy to see a far greater return than they would have with a standard whole life insurance policy.
Regardless of what type of life insurance policy you opt for, whether you choose to look at term life insurance quotes or whole life insurance quotes or a variable universal life insurance quote, your best bet – by far – if you are looking for the largest return on your monthly premium, is to get an online life insurance quote.
Life insurance rates can vary tremendously between traditional brick and mortar insurers and online brokers. Why? For the simple reason that online brokers have almost no overhead. That allows them to pass a tremendous savings along to you month after month.
So please, get as many life insurance quotes as you can and compare life insurance rates not only between different insurance companies but between online and off-line brokers as well. Only then will you have all of the information you need to make a wise and fully informed decision when it comes to your life insurance needs.