Variable Life Insurance in Dothan, AL

How is variable life insurance Dothan different from other policies?

Variable life insurance is unique because its death benefit and potential cash value can fluctuate based on the performance of underlying investments. Compared to other life insurance policies such as term or whole life, variable life allows the policyholder to use the cash value to potentially increase the death benefit or gain access to their money. In Dothan, AL, a variable life insurance policy may help families secure the financial future of loved ones while also offering the opportunity to have potential growth opportunities depending on investment performance.

Can I cancel my policy after getting variable life insurance quotes in Dothan?

Yes, you can cancel your variable life insurance policy in Dothan, AL. ABC Insurance Company makes it easy to cancel your policy without any cost to you. All you have to do is contact a representative at ABC Insurance to file the cancellation papers. Depending on your specific policy, your contract may require a notice period of up to 30 days prior to the effective cancellation date. During this time, your premiums will still be collected and any new beneficiaries will not be added to the policy. Once the cancellation is complete, any accumulated funds under the policy will be returned to the policyholder.

With a variable life insurance policy Dothan, can I decide where my premiums are invested?

Yes, you can choose where your premiums are invested with variable life insurance in Dothan, AL. In Dothan, you have the option of investing in stocks, mutual funds, bonds, exchange traded funds, and other investments. Each of these investments offer different levels of risk and potential return, and you can pick the combination that works best for you and your financial goals. Your life insurance provider can also help you determine which investments are best suited for your individual needs. Be sure to discuss your options with your provider to make sure you're properly diversified in your investments.

What fees are there with variable life insurance near Dothan?

In Dothan, AL, the fees associated with variable life insurance will vary depending on the type of table rates used, the agent providing the policy, and the insurer. Generally, policyholders will pay an annual policy fee, premiums that are charged periodically or lump sum payments, fees to cover the policy’s fund management, and any administrative and additional fees. Fees for a variable life insurance policy are typically greater than those associated with a traditional life insurance policy, however they may be reduced with the addition of riders or other policy enhancements.

Can I include riders in my variable life insurance quote Dothan?

Absolutely! In Dothan, AL, adding riders to a variable life insurance policy is a great way to further customize your insurance policy and make sure that your family and loved ones are adequately taken care of. Riders are often used to expand coverage, provide protection from long-term care expenses, and may even have so called “living benefits” that allow you to access your benefits while you are alive and to cover long-term illness expenses.

Are Dothan variable life insurance companies good for short-term needs?

Variable life insurance can be an attractive option for individuals in Dothan, AL who are in need of short-term coverage. Variable life insurance typically offers flexible premiums, death benefits, and a cash value that provide protection in the event of an untimely death. Furthermore, if you desire more control over your investment options, variable life insurance can be beneficial as you can choose from a wider range of investment options than many other types of life insurance.

Can I upgrade variable life insurance policies near Dothan to another policy type?

In Dothan, AL, you should speak to an insurance specialist to determine if you are able to upgrade your variable life insurance policy to another type of policy. Depending on the age of the insured and the type of coverage, you may be able to upgrade your policy. You can generally upgrade your policy to a more robust version, providing the insured with additional benefits such as long-term care riders. However, some policies may contain limitations that you should be aware of before making any changes.

Can I change investment options for variable life insurance in Dothan without tax effects?

Absolutely, you can switch between investment options without tax implications in Dothan, AL. However, for this to be valid, you must engage in a “like-kind” exchange. This means that both the property being sold and the new property being purchased must both be of the same type. As long as you abide by this criteria, you can engage in an exchange of equal value for equal value, meaning that no taxes will be due upon making the switch. It's important to do your research and make sure your options are qualified for like-kind exchanges before making any transfers.

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

Yes, variable life insurance is a type of permanent life insurance. Additionally, it is available in Dothan, AL to provide policyholders with more choice and flexibility in the life insurance products they can purchase. Variable life insurance provides policyholders with the ability to allocate their premiums among different investments/investment options, allowing them to diversify and possibly increase the returns on their investments.

Do I get dividends from my Dothan variable life insurance company?

Yes, depending on the specific policy you have in Dothan, AL, you may be eligible to receive dividends from the investments within your variable life insurance policy. Generally, this type of policy features a cash-value component that can produce dividends. As you pay into your policy, a portion of your payments go to the cash-value and may pay you back in the form of dividends. Generally, life insurance dividends are paid out on an annual basis and any dividends that are paid out are subject to federal, state, and local income tax laws.