An advantage of variable life policies is​ that: policyholders have flexibility in making their own investments. Individuals avoid the high fees of variable life insurance​ by: purchasing​ lower-cost term insurance and investing the cost difference.

What is a variable annuity life insurance policy?

A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic pay- ments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.

Does variable life insurance have a cash value?

Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash-value account, which is invested in a number of sub-accounts available in the policy. The cash value account has the potential to grow as the underlying investments in the policy’s sub-accounts grow.

What are the benefits of variable appreciable life insurance?

The benefit of variable appreciable life insurance is that all cash in the policy is exempt from income tax. Additionally, any money you borrow from the policy is income-tax free and does not need to be repaid during your lifetime as long as the policy remains in force.

How does a variable universal life insurance policy work?

Flexible Premiums with Variable Universal Life Insurance. Variable universal life insurance policies have the cash value structure of variable life insurance, but you can use the cash value to pay premiums. You can also pay a larger amount in premiums if you choose to do so.

How to surrender a Prudential life insurance contract?

You’ll also need to include the policy number and the cash surrender value of the policy you are surrendering. Sign and date the form. Then mail the form back to the company. Verify that the company has received the form. It may take up to 30 days for the insurer to send the funds to you.

How are fees charged on variable life insurance?

Each time you withdraw money from the policy’s cash value you can be charged a fee. This is often relatively small, around $25. If you take out a policy loan using the cash value as collateral, the insurer will charge interest on the loan. Riders are add-ons that can be used to alter the terms of the policy.