Also, make sure you are able to continue premium payments so your policy doesn’t lapse if the market declines. If you take a loan, withdrawal or partial or whole surrender your death benefit may be reduced, your policy may lapse or you may face tax consequences.
There are fees and charges for variable life insurance coverage, including a cost of insurance based on characteristics of the insured person, such as gender, health and age. There may also be underlying fund charges and expenses, and additional charges for riders that customize a policy to fit your individual needs. Investing involves risks, including possible loss of principal.
Life Insurance FAQs
Why do I need life insurance?
Life insurance offers peace of mind by ensuring that your loved ones will be taken care of in the event of your untimely death. Plus, payouts are tax-free.
Is my policy through work enough?
Life insurance through your employer is not portable, so it won’t come with you if you leave the job. Also, the amount is often not enough to meet people’s protection needs.
Why should I get coverage now?
Rates tend to go up as you age. Buying a policy when you’re younger lets you lock in a lower rate.
What is term life insurance?
“Term” refers the length of coverage that you choose. If you pass away during the term (usually 10, 20 or 30 years), your beneficiaries receive a cash payout.
Why is term life a good option?
With term life insurance, you’re only paying for the years where the need is greatest (when your kids are younger or in college), and it is usually the most affordable type of insurance.
Are there other types of life insurance besides term?
There are other types of insurance for people seeking life-long coverage, but these types tend to be more expensive.
How much do I need?
This depends on what you want to leave when you’re gone. There are two common methods for calculating the amount of life insurance you need: lump sum and income replacement.
Learn more about these methods