One of several types of life insurance policies that provide both life insurance protection and a savings component. The return on the savings portion of a variable life policy will generally vary, as it depends on the performance of the underlying securities.
A form of life insurance very similar to whole life insurance. In a variable life insurance policy, the cash value is invested in equity or debt securities. Policyholders can select and switch investment instruments. The policyholder bears the risk of the securities investment; the insurance company only guarantees a minimum death benefit amount.
A type of permanent life insurance in which the death benefit and the policy value vary in relation to the investment experience of a selected fund in which the policy values are invested.
Life insurance under which the benefits will vary, depending upon the investment experience of a separate account supporting such a policy.
Life insurance that provides a guaranteed minimum death benefit, but the actual benefit paid may be more, however, depending on the fluctuating market value of investments behind the contract at the time of the insured's death. The cash surrender value generally fluctuates with the market value of the investment portfolio. (See also: equity linked.)
A type of life insurance policy where the cash value of the policy and the death benefit fluctuate based on the investment performance of a separate account fund. Premiums are invested into a fund that includes a variety of investments and securities. The owner of the policy determines the distribution of his funds among different investment choices. The value of the life insurance benefit is based on the performance of the investments in the fund. (Similar to Unit linked Life Insurance.)
Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The amount of death benefit payable would generally not be less than the initial death benefit payable under the policy, depending on the terms outlined in the policy.
Variable life insurance is a type of life insurance where money that remains after payment of premiums is invested in vehicles of your choosing. Variable life insurance is a hybrid of traditional life insurance and a variable annuity. Variable life insurance does have the option of a minimum guaranteed death benefit. However, variable life insurance can be expensive and risky, depending on the type of investments made.
Investment-oriented whole life insurance policy that provides return linked to an underlying portfolio of securities (typically mutual funds).
Life insurance in which the benefits payable and the cash value accrual are related to the return being generated on the investments selected .
A type of whole life policy in which the death benefit and the cash value fluctuate according to the investment performance of a separate account fund that the policyholder selects. Because the investment account is regulated by the Securities and Exchange Commission, you must be presented with a prospectus before you purchase a variable life policy.
A kind of insurance where the death benefits and cash values depend on the investment performance of one or more separate accounts, which may be invested in mutual funds or other investments allowed under the policy.
A form of whole life insurance that allows the cash value portion to be invested in stock, bond or money market portfolios.
Life insurance in which the face amount may fluctuate during the term of the policy in accordance with the value of common stocks or other assets into which the reserve assets are invested.
A type of whole life insurance policy in which the face amount of insurance changes relative to the performance of its investment elements subject to a guaranteed minimum face amount.
A type of permanent insurance providing death benefits and cash values that vary with the performance of a portfolio of investments. The policyholder may allocate premiums among investments offering varying degrees of risk, including stocks, bonds, combinations of both, and accounts that guarantee interest and principal.
Many life insurance-based products are recognized as savings and investment alternatives for people in all stages of life. In addition to their competitive returns, tax deferral on cash-value earnings, and tax-free death benefit, many life insurance-based products can also be used to satisfy educational and retirement planning needs.
A permanent whole life insurance policy under which the death benefits and/or cash values vary (the death benefit is guaranteed to be at least as large as the initial face amount) reflecting the investment experience of a separate pool(s) of assets supporting the reserves for such policies.
An investment oriented type of permanent life insurance that provides both life insurance coverage and a savings vehicle through sub-accounts with the amount of return linked to an underlying portfolio of securities. Variable life insurance has a fixed premium and a guaranteed minimum death benefit.
Life insurance policy in which the assets backing a policyholder's cash value grow in a separate account rather than in the insurance company's general account. The separate account assets are invested in stocks, bonds, money market funds, or other such instruments. Death benefits on traditional variable life policies fluctuate with the investment performance of the separate accounts, but will never fall below the policy's initial face amount. Cash values are not guaranteed.
Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The amount of death benefit payable would, under variable life policies that have been proposed, never be less than the initial death benefit payable under the policy.
a form of life insurance with steady premiums but a death benefit that fluctuates (above a guaranteed minimum) with the value of investments backing the contract.
An ordinary life policy in which the face amount of insurance changes in relation to the performance of its investment elements subject to a guaranteed minimum face amount.
Form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of a separate account fund.
A type of permanent insurance providing a death benefit and cash value that varies with the performance of a portfolio of investments. Premiums can be allocated among a variety of investments offering different degrees of risk and reward, including stocks, bonds, combinations of both, or accounts that guarantee interest and principal. J K M N O X Y Z
A type of life insurance where payout or benefits are not a fixed amount, but rather are variable depending on the investment earnings accumulated. The insured is allowed the investment option and/or the stock portfolio desired. The cash surrender value or benefits are tied directly to the income earned by the investments.
Contract or plan under which the death benefit and cash fluctuate in tandem with the investment performance of a Separate Account generally composed of common stock.
A form of permanent life insurance in which premiums are fixed, but death benefits and other values may vary, reflecting the performance of the subaccounts in an insurer's separate account.
A form of life insurance under which the death benefit and the cash value of the policy fluctuate based on the investment performance of the underlying separate investment accounts.
Life insurance under which the benefits vary, but never below a guaranteed minimum benefit, based on the value of assets behind the contract at the time the benefit is paid.
Life insurance under which the benefits are not fixed but relate to the value of assets behind the contract at the time the benefit is paid.
A policy in which the death benefit and cash surrender values vary according to the investment experience of a separate investment account.
A life insurance policy that allows you to allocate a portion of your premiums to a separate account comprised of various investment funds within the insurance company's portfolio, such stocks, bonds, equity funds, money market funds, and bond funds. The death benefit amount will be determined by the insured person's portfolio market value at the time of death. Purchasers of these policies hope that investment gains will increase their death benefit and cash values more effectively than other types of policies. While most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum, they make no other guarantees.
A type of whole life insurance that allows the policyowner to invest premiums in stock, bond, and money market funds chosen from the insurance company's portfolio. The cash value and death benefit of this policy is determined by the success of those investments.
Whole life, or universal life, contracts having values that fluctuate according to the investment performance of the underlying mutual funds. While they have no guaranteed cash value, they often have a minimum guaranteed death benefit. Unlike conventional products, variable products are regulated by the Securities and Exchange Commission and sold with a prospectus.
Investment based life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The assets fluctuate according to the investment experience of funds managed by the life insurance company. Premium payments may be fixed as to timing and amount (scheduled premium variable life) or subject to change by the policyholder (flexible premium variable life). Because variable life policies have investment features, life insurance agents selling these policies must be registered representatives of a broker-dealer licensed by the National Association of Securities Dealers and registered with the Securities and Exchange Commission.
A type of permanent life insurance in which the cash value fluctuates depending on the investments purchased by the purchaser for his or her portfolio.
A insurance policy that combines permanent insurance protection and an investment account. Accumulated cash values are held in a separate account where they may be invested in different portfolios of stocks, bonds, or commercial paper. The value of the policy depends on the fluctuating market value of invested funds..
A policy that combines protection against premature death with a savings account that can be invested in stocks, bonds, and money market mutual funds at the policyholder's discretion.
A variation of whole life insurance created to fight inflation and to remain competitive with other investment vehicles that provide higher rates of return. It affords policyholders a chance to earn capital gains on their insurance by investing the cash value of the policy in stock, bond, or money market portfolios. The policyholder sustains the investment risk and the insurance company guarantees a minimum death benefit that is not affected by any portfolio losses. As in IRAs, earnings from variable life policies grow tax deferred until distributed. Income is taxed only for the amount that exceeds the total premiums paid into the policy. See: Capital Gains; Individual Retirement Account; Inflation; Tax Deferred; Whole Life Insurance