What Is Variable Life Insurance?
Variable life insurance is a type of permanent life insurance that features:
- Cash Value Component – Part of your premium goes into a separate investment account.
- Investment Options – You can choose from a variety of subaccounts (like mutual funds) to potentially grow the policy’s cash value.
- Flexibility – Depending on your policy, you may have the option to adjust your premiums and death benefit over time.
While it shares similarities with other forms of permanent life insurance, the defining feature of variable life insurance is the control you have over the investment component, which can offer higher returns—but also carries more risk.
Benefits of Variable Life Insurance
- Lifetime Coverage
Unlike term policies, variable life insurance offers lifetime protection as long as premiums are paid. - Cash Value Growth Potential
Since you can invest in subaccounts, there’s potential for higher returns—ideal for those who want their insurance policy to work harder for them. - Flexible Premiums
Depending on the policy, you could adjust your premium payments, giving you financial flexibility in changing circumstances. - Tax Advantages
Growth within the policy’s cash value is typically tax-deferred, which can offer long-term advantages for your overall portfolio.
How Korhorn Financial Group Helps
At Korhorn Financial Group, our mission is to provide personalized guidance tailored to your financial situation. Here’s how we can support you:
- Customized Analysis: We evaluate your goals, risk tolerance, and overall financial picture to determine if variable life insurance is the right fit.
- Policy Selection: With numerous carriers and investment options, we help you select the subaccounts and policy features that align with your risk profile.
- Ongoing Support: Life changes. Whether you need to revise coverage, adjust premiums, or update beneficiary information, our team is here to guide you.
- Holistic Financial Planning: We integrate your variable life insurance with broader strategies such as retirement planning, wealth management, and estate planning.
Is Variable Life Insurance Right for You?
Choosing variable life insurance often comes down to your risk tolerance and long-term investment goals. It may be beneficial if you:
- Want a hands-on approach to your policy’s cash value growth.
- Have a medium to high risk tolerance.
- Are looking for long-term wealth-building options within your insurance plan.
However, if you prefer a guaranteed fixed growth or lower risk alternatives, other types of permanent life insurance might better suit your preferences.
Frequently Asked Questions
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- How does variable life insurance differ from universal life insurance?
Variable life policies allow you to invest in subaccounts, which can lead to higher returns (or losses), while universal life focuses on flexibility with interest crediting rather than market-based subaccounts. - Can I change my coverage amount over time?
Many variable life policies permit adjusting the death benefit, depending on policy provisions and any underwriting requirements. - Are the investment options guaranteed?
The returns within the subaccounts are not guaranteed, as they’re subject to market fluctuations. It’s important to discuss your risk tolerance with a financial professional.
Get Started Today:
Ready to take the next step toward a more confident financial future? Contact Korhorn Financial Group today:
- Phone: (574) 247-5898
- Email: nonpc@korhorn.com
- Office Locations: Contact | Korhorn Financial Group | Granger, IN
Schedule your complimentary consultation—our dedicated team is ready to provide personalized strategies tailored to your goals. Let’s start building your financial confidence together!
Why Partner with Korhorn Financial Group?
- Trusted Guidance: Our professionals stay updated on the latest insurance products and market trends.
- Comprehensive Services: From retirement planning to wealth management, we offer a holistic approach.
- Transparent Fees: We prioritize open communication so you feel confident in every decision.
- Community Trust: Proudly serving families and businesses with integrity, trust, and dedication.
