Is variable life insurance any good?

Question

It is payable for 5 or 10 or 15 years but the premiums are pretty high. Is it good?

Answer 1

Check the two articles below regarding whole life and universal/variable life products.

After learning about how insurance companies have conned the public about whole life products, I can only recommend term life to any clients I have. They will FAR exceed what could be done in a universal or variable product if they invest in mutual funds themselves.

Answer 2

dont listen to fth106 he is a moroff he is a cash value nut. by only term, and dont let him con u into thinking u need life insurance later on in life. it just depends on each individual ie, did u save for retirement? just remember cash value  steals your time use of your money. period. thoses cash value guys take your money and invest your money and keep your money for themselves. just figure it out take 50.00 a month and invest in a high rate of return. do the math that is what those morons of cash value are doing ....using your money to earn interest for them not you. by term invest the difference of the premiums and sit back and s***w the whole life's

Answer 3

I would never recommend a VUL.  I dont believe in attaching your life insurance to the stock market.  There is too much inherent risk involved and you could lose your life insurance if things go badly.

I also don't agree with anyone who ONLY recommends term life insurance.  There is a place for whole life in your life insurance portfolio.  I would hate to have a client that I sold a 20 or 30 year level term product to come back when it expires telling me that they need to continue their insurance but just can't afford it.  

There is no crystal ball.  You don't know what life will be like 20 to 30 years from now.  Will you still need life insurance?  Will life throw you curve balls that prevent you from doing what you are now planning?

My recommendation is to take a universal life policy for an amount that you will want to keep all of your life and attach a term rider to it that will give you the increased amount of insurance during the life of the rider.  For example a $100,000 UL with a $150,000, 20 year term rider would give you $250,000 of coverage for the next 20 years and then $100,000 after that.

Don't let anyone sell you something simply because that is all that they will quote you.  Buy what you need, not what a life salesman wants to sell.

Answer 4

Many agents sell variable on the point that it's an investment tool. I think it's a bad idea. Get the longest level term insurance you qualify for with a face value equal to 8-10 times your annual income. Then....invest in some good mutual funds with a long, strong track record. You'll come out WAY ahead!

Answer 5

The only good life insurance is term insurance. Either level term or reducing term, depending on your situation. Term insurance has the lowest premium for the greatest amount of protection. Shop for the best rates.

Answer 6

Absolutely not, Term is the original and only smart insurance to get.

Answer 7

VUL!!!!!!!!!!!!!! RUUUUUUUUUUUN!

Buy Term. Level Term. Not Return of Premium Term. Not Reducing Term.

LEVEL TERM.

I never believed in attaching my life insurance with investments in the stock market either. Very risky and if the investments you made tend to take a dump and you end up owing any monies where does the money you owe come from?

here's a secret that noone selling you this type of policy wants you to hear.............from your policy benefit...no lie.

Answer 8

In case, ANY Cash Value life insurance policies (permanent) are not a good idea. The combine your life insurance and your investments  together which will cause the cost to go up and your rate of return to go down. Term life is a much cost effective type of life insurance to have. Invest the difference between the cost of the 2 types into mutual funds, in the end you will be better off. Be careful of which types of term you purchase though, people will tell you to shop around and compare rates that would be a unwise thing to do. Because not all term products work the same, many are for example say 20 year term and the premium rates are only gurateed of the first 5 years. That is after 5 years they can either raise the term rates up to your current age or convert it to a cash value policies. Also the agent will get a much large paycheck for the variable life than the term life, which do u think they will normally recommend?