Variable Life Insurance

Looking for Variable Life Insurance in Michigan?

Variable life Insurance is a cost effective ways to protect the people who depend on you financially. The reality is that life is unpredictable- but we are here to help.

Life insurance is the cornerstone of a solid financial plan. Some reasons to have life are:

  • Charitable donations
  • Create an inheritance for your heirs
  • Pay final expenses

Variable Life Insurance is a type of permanent life insurance with a cash value investment component. There are three main sectors of variable life insurance:

  • Death benefit
  • Cash Value
  • Premiums

The death benefit is structured into two policies: level death benefit and face amount plus cash value. With the level death benefit, death benefit is equal to the face value of the policy when you purchased it. The face amount plus cash value is a bit pricier, but any beneficiaries on your policy will receive your cash value in addition to the policy face value.

Every time you pay your premium, a certain percentage of that will go into the cash value. The cash value will then be invested into sub-accounts of your choice, which are similar to mutual funds.

With premiums, you can either: pay a portion of premiums, not pay your premiums, have a single premium policy, or pay more than your target premium. This all depends on the amount of your cash value, but don’t worry, we will structure your entire plan to help put you in a confident financial position possible.

Looking for Private Pension Plan or Annuities in Michigan?

Historically, individuals had three core sources of retirement income: and employer pension plan, savings and social security.  Social Security and Pensions provided monthly checks a retiree could incorporate into their budget.  Today, form the vast majority of retirees, Social Security remains the only structured monthly income.

A Private Pension Plan, funded through a fixed or variable annuity can help serve as a substitute for that missing employer pension component.  Both offer different degrees of risk and reward and utilizing one or both depends on your individual risk tolerance and goals.

A fixed annuity’s return is tied to an interest rate.  While it may offer a lower return it also offers lower risk of principal fluctuation. Variable annuities come in a variety of structures to help address your specific goals.

Typically these annuities can be funded by existing IRAs, 401ks or savings.  Monthly benefits from the annuities can be structured to address your unique needs.

Variable Life Insurance policies are subject to substantial fees and charges. Policy values will fluctuate and are subject to market risk and to possible loss of principal. Guarantees are based on the claims paying ability of the issuer.

Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.

How to get started

To explore further, contact our office for a consultation or fill out the quote form below.