What is a Variable Death Benefit?
” A variable death benefit may be awarded to your beneficiaries under two circumstances. You may purchase something called variable annuity life insurance , which allows you to designate that your invested money be shifted into different investments. If you die before the annuity has reached full value, there’s usually a stock payment of life insurance that can go to beneficiaries. . Variable annuity life insurance is often criticized. It has numerous fees, and if you borrow money against it, you have to maintain the account for your lifetime, or any money borrowed is automatically considered taxable income.
A variable death benefit may be awarded to your beneficiaries under two circumstances. You may purchase something called variable annuity life insurance, which allows you to designate that your invested money be shifted into different investments. If you die before the annuity has reached full value, there’s usually a stock payment of life insurance that can go to beneficiaries. Variable annuity life insurance is often criticized. It has numerous fees, and if you borrow money against it, you have to maintain the account for your lifetime, or any money borrowed is automatically considered taxable income. This can be a heavy blow if you’ve invested a lot in the policy (and you do get to choose how much you invest each month). It’s similar to having a mutual funds account and a life insurance policy at the same time. As for death benefits, the variable death benefit under this type of life insurance usually has a guaranteed minimum payout, but can be considerably higher if your investment
A variable death benefit may be awarded to your beneficiaries under two circumstances. You may purchase something called variable annuity life insurance, which allows you to designate that your invested money be shifted into different investments. If you die before the annuity has reached full value, there’s usually a stock payment of life insurance that can go to beneficiaries. Variable annuity life insurance is often criticized. It has numerous fees, and if you borrow money against it, you have to maintain the account for your lifetime, or any money borrowed is automatically considered taxable income. This can be a heavy blow if you’ve invested a lot in the policy (and you do get to choose how much you invest each month). It’s similar to having a mutual funds account and a life insurance policy at the same time. As for death benefits, the variable death benefit under this type of life insurance usually has a guaranteed minimum payout, but can be considerably higher if your inve
