Variable Life Insurance in Bensenville, IL

What is variable life insurance Bensenville?

Variable life insurance is a permanent life insurance product that allows the policyholder to customize the coverage and investment options. Located in Bensenville, IL, a local independent insurance agency like Gateway Insurance Services can help local families decide whether variable life insurance is right for them. Variable life insurance allows policyholders to invest in various stocks, bonds, and mutual funds. This flexible form of life insurance allows borrowers to manage investments according to their current financial goals and needs. When compared to traditional life insurance policies, variable life insurance provides the opportunity for greater returns or a higher death benefit than traditional whole life insurance policies.

Can I use my variable life insurance quotes in Bensenville as collateral?

Generally in Bensenville, IL, you cannot use variable life insurance as collateral for a loan. This is because it’s impossible to determine the amount of money you could get from a variable life insurance policy as the value is dependent on market conditions. Furthermore, in order to qualify for a loan, you need to be able to provide an asset as collateral, which isn’t possible with a variable life insurance policy.

What potential risks are there with a variable life insurance policy Bensenville?

In Bensenville, IL, the potential risks associated with variable life insurance are numerous. One of the most common risks is the possibility of losing money, either through the insurance company's insolvency, changes in the financial markets, or policyholder mismanagement. Additionally, under certain circumstances, policyholders may be subject to market risk if their investments fail to yield a sufficient return. Moreover, since variable life insurance is a type of investment that may generate taxable income, policyholders may be liable for significant taxes.

What fees are there with variable life insurance near Bensenville?

The fees associated with variable life insurance can vary significantly depending on numerous factors. In Bensenville, IL, customers can expect to incur fees related to administrative costs, mortality and expense risk fees, management fees and potential surrender charges. Additionally, any underlying mutual funds will also carry additional fees and charges, such as 12b-1 fees and other fund-level expenses. When looking at variable life insurance policies it is always important to factor in all related fees in order to make an informed decision that best meets your needs.

What happens if my variable life insurance quote Bensenville underperforms?

If you're facing poor performing investments in Bensenville, IL you may want to consider reevaluating your financial goals and portfolio. Take a look at your current investments and the returns they are providing. If they are not meeting your original expectations, consider making changes and adjustments to your portfolio. There may be a more suitable investment available that better fits your goals or budget. Speak to a financial advisor to create and implement a plan to get you back on track.

Do Bensenville variable life insurance companies have age limits?

Yes, age restrictions may apply to buying variable life insurance in Bensenville, IL, depending on the insurer. Generally, those interested in purchasing a policy must be at least 18 years of age and often will not be eligible after the age of 65. Additionally, some insurers may have stricter age limits or different criteria, such as minimum total years of coverage. Be sure to check with your insurer to make sure you meet their requirements before committing to a policy.

Do variable life insurance policies near Bensenville provide guarantees on returns?

Variable life insurance is a great option for people in Bensenville, IL looking to invest in a life insurance policy that includes an investment component. While no guarantees can be made with regard to investment returns, the cash value of the variable life insurance policy adds another layer of protection compared to a traditional whole life insurance policy by providing the potential for greater returns. Because of this, policyholders in Bensenville have the opportunity to grow their cash value funds in addition to the potential payout from the death benefit.

How regularly should I check my variable life insurance in Bensenville?

It is important to review your variable life insurance policy at least once per year, especially if you live in the Chicago metropolitan area, like Bensenville, IL. Factors such as changes in your marital or financial situation, lifestyle, family structure, or the value of your investment choices should be factored into the review. If your policy was purchased from a broker, they should also be involved in the review process.

Is my Bensenville variable life insurance policy considered permanent life insurance?

Variable life insurance is a type of permanent life insurance product that can provide Bensenville, IL residents with the potential for financial growth and tax-deferred savings. Additionally, it allows policyholders to choose a suite of investments that can help them reach their income goals. Variable life insurance allows the policyholder to have more control over their financial future with customized asset allocations and the ability to shift funds into different investments according to their needs.

Can I convert from term life insurance with a Bensenville variable life insurance company?

Yes, it is possible to convert your term life insurance policy to variable life insurance in Bensenville, IL. Generally, the process involves a one-time premium that must be paid in order to receive the variable life insurance. This can be a great way to add more financial flexibility to your life insurance policy. Additionally, it will provide you with a wide variety of choices as to how your money is invested. It is important to note that the value of variable life insurance depends on the performance of the underlying investments, so be sure to research each option thoroughly before you make a decision.