Insurance Life Insurance

Is Variable or Term Life Insurance Better?


    • Variable life insurance allows you to invest your premium payments into mutual fund sub-accounts. The policy provides death benefit protection and the sub accounts allow you to build cash value inside of your policy that grows tax deferred and can be withdrawn tax-free for supplemental retirement income. Term life insurance offers inexpensive death benefit protection and no cash value. Term life is also simple to understand.


    • Variable life insurance comes loaded with various fees. Policy fees and mutual fund fees as well as other expense charges can make variable life insurance an expensive way to purchase life insurance. Term life insurance is only temporary. Because of this, it is not considered suitable insurance for burial insurance.


    • Understand why you are buying life insurance. Life insurance can be used for a variety of purposes, but if you need to insure your mortgage for 30 years, for example, you may be better off with a term life policy. If your need is more permanent, like burial insurance, or supplemental retirement income, you will be better off using variable life insurance.

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