Variable Life Insurance
Those men and women with a growing family to protect are called upon to make all sorts of financial decisions, from college funding to retirement planning. One of the most important considerations, however, is how to protect the family in the event the main breadwinner dies before his or her time. That is where life insurance coverage comes in to play, and this type of coverage is absolutely essential for individuals with a spouse and children to protect.
Life insurance coverage is designed to protect those family members in the event of an untimely death, and it is absolutely essential for workers to make sure they have the coverage they need to provide that protection. It is important for every individual to ensure that there is sufficient coverage in place to replace lost wages and help his or her family live the lifestyle to which they have become accustomed.
In many cases that means buying life insurance with a death benefit equal to between 20 and 25 times the breadwinner’s annual salary. For a worker earning an average salary of $40,000 that means a death benefit of between $800,000 and $1,000,000. While many workers assume that this level of coverage is out of reach, with the right research and plenty of shopping around it can be quite affordable.
Variable life insurance is a great way for workers to get the advantages of a generous death benefit combined with a good cash benefit and the opportunity for future growth. This type of life insurance coverage provides not only a death benefit but an element of investment as well. This allows the premiums paid to grow over time, providing a cash benefit down the line. This cash benefit can be accessed even while the insured is still alive, providing a level of flexibility that other types of life insurance do not offer.
Many people enjoy the simplicity of variable life insurance as well as the potential for appreciation over time. Combining the traditional death benefit of life insurance with investment can make a great deal of sense, and many people like this type of combined approach.
In addition many insurance shoppers like the idea that their premiums are not simply going into a black hole. Many people who know they need life insurance resist buying it because they worry that the premiums they pay will have been wasted if the death benefit is not claimed. Variable life insurance helps to alleviate this concern by providing the insured with a way to benefit from a life insurance policy while they are still alive. The accumulated cash benefit can be used for any number of purposes, from home repairs and college costs to paying off he mortgage or providing a retirement nest egg.
And since the money can be invested in a number of different ways the insured has control over the eventual cash value of the policy. By investing in a combination of stocks, bonds and other investments workers can participate in the returns of the stock market while enjoying a level of protection against losses in the down years. This unique type of life insurance provides many benefits, and it is definitely worth a look.