Variable Life is tricky. If properly funded it can be a tool that offers cash value growth based on market upside, but also death benefit protection should you prematurely pass away.
Often times, reps suggest variable contracts due to the 'sexiness' of the market, and recommend premium levels that do not support the product correctly. If variable life is not funded correctly it can be a disaster waiting to happen. If the premium is substantial enough to support the cost of coverage and left over monies are allocated appropriately, in can be a unigue tool in the planning process.
Do not fall victim to illustrations run at 8% and 10% returns with mimimal funding. It will not be a realistic view of how the policy will work. Understand the pros/cons - which every product will have - and most importantly determine what the coverage is really for and what you are trying to accompish. In the end, it is life insurance NOT an investment.
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Often times, reps suggest variable contracts due to the 'sexiness' of the market, and recommend premium levels that do not support the product correctly. If variable life is not funded correctly it can be a disaster waiting to happen. If the premium is substantial enough to support the cost of coverage and left over monies are allocated appropriately, in can be a unigue tool in the planning process.
Do not fall victim to illustrations run at 8% and 10% returns with mimimal funding. It will not be a realistic view of how the policy will work. Understand the pros/cons - which every product will have - and most importantly determine what the coverage is really for and what you are trying to accompish. In the end, it is life insurance NOT an investment.
~SAP
SAP