What Is The Difference Between Whole Life And Variable Life Insurance?
947 POINTSContact Meview profileJose S Sanchez JrPROPresident, The Insurance Advisor, Burr Ridge, ILthe simplest way to think about it is that variable life policy's allow you to chose how much your premium payment will be and where the money will be invested. on the other have a whole life policy will have a fixed premium and a fixed interest rate. there are pros and cons to explore with each type of policy. I hope that helps..Answered on September 3, 2014+01+1 this answer
0flag this answerview more answers by Jose S Sanchez Jr
0 POINTSContact Meview profileHead LibrarianInsuranceLibrary.com, South DakotaIn a whole life policy the company assumes responsibility to make sure that the policy will meet all of its promises. The customer only needs to pay the premiums. In a variable life policy, the customer directs where the money paid to the company will be invested. The company is only required to pay the death claim when there is sufficient cash in the policy to keep it in force.Answered on September 3, 2014+01+1 this answer 0flag this answerview more answers by Head Librarian
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a terrific question! They both are whole life policies, and they both have a death benefit, and that's pretty much where the similarities end. A whole life policy will have a set death benefit, and a set premium payment, that is always the same. This is a policy that you can purchase, set up on autopay, and basically let run on autopilot. A variable policy isn't quite so simple. In this type of policy you are given responsibility for where the premiums are invested, so the risk moves from the insurer to you. The premiums can be stable, if you are good at investing, and the costs of the insurance are covered. If you're not, your premiums can vary quite a bit, and your length of coverage can be shortened considerably, or even ended. This is definitely not an autopilot policy. I hope that shows you what you needed to see. Thank you for asking!Answered on September 3, 2014flag this answer
Did you find these answers helpful?
Yes
No
Go!
Add Your Answer To This Question
You must be logged in to add your answer.
.JPG){kind=avatar}
