Why Should I Have Variable Life Insurance?

I am 67 years old, retired, homestead & vacation homes paid off, $1M in 401K and $120K in savings?  Burial plots are also paid off with the cash value of insurance for my spouse and I at $16,000 total.

  1. 1313 POINTS
    Lenny Robbins
    Principal, LifeNet Insurance Solutions, Redmond, WA
    Based on your age alone, I would not recommend variable life insurance as the best option for you. Variable Life has high sales charges compared to other types of coverage. While this may not matter at younger ages, it would certainly impact you. In addition, it doesn't seem that a larger life policy is needed in your situation. Personally, I would be more concerned with how you might handle long term care needs if that becomes an issue for either of you. I would suggest that a fee-only planner might help you to maximize your current income without unnecessary risk.
    Answered on December 31, 2016
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  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! A better one might be "why was this option recommended to me?" As Mr. Robbins points out, this is not the best product to offer you, in truth, it would offer you little advantage at all. I am thankful that you asked your question, and did not blindly trust the guidance of whomever offered this as an option. There are unfortunately a few bad apples out there that are either not up to date on the best practices/best solutions offered, or sadly, more interested in profit than service. Not saying that the person who offered this was one of them, but again, perhaps you take Mr. Robbins' advice and seek an alternative adviser for a more balanced outlook on how to safeguard or grow your assets. Thank you for asking, and I pray you have an awesomely blessed 2017!
    Answered on January 2, 2017
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  3. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    I would have to question why you would need a variable life policy in the situation you described. At this point purchasing new life insurance would entirely be your choice, but there may not be a "need" so to speak other than to do specific things you would like to do when you pass.
    Answered on February 9, 2017
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  4. 406 POINTS
    Coby Higgins
    Licensed Independent Agent, Texas Insurance Alliance, Little Elm, TX
    The first question to ask is if you or your spouse died yesterday, do you have access to enough money to cover expenses until death certificates, probate, etc. are settled. If yes, then you may not need more insurance. If no, then you should purchase addition insurance to cover any gaps in your coverage. I don't recommend any investment options within life insurance unless you plan to invest for 10+ years. After your coverage is determined, are you secure with the performance of your 401K to outlast your retirement? Have you been shown either fixed or equity indexed annuities and how and the different methods of payouts they offer for some or all of your retirement funds? These can provide you growth and/or interest without the market fluctuations.
    Answered on February 10, 2017
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