Saturday, June 6, 2015

Variable Insurance Plans

  • This policy was introduced in the United States in 1977
  • Variable life Insurance is a kind of  "Whole Life" Policy where death benefit and  cash value of the policy fluctuates according  to the investment performance of a  special investment account into which premiums are credited. Hence it provides no guarantee on interest rate or minimum cash value.
  • Knowledgeable people comfortable with equity are most likely to buy variable life insurance.
  • Premium payments are fixed and not flexible.
  • Provides minimum death benefit guarantee. Mortality and expense risks are borne by insurer.



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