Variable Life Insurance in Glenview, IL

What are the main components of variable life insurance Glenview?

A variable life insurance policy purchased in Glenview, IL typically includes two main components: death benefit protection and cash value investment. The death benefit protection is a guaranteed amount that will be paid to your designated beneficiary in the event of your death. The cash value investment gives you the opportunity to grow the policy’s underlying value and use the cash value for withdrawal goals such as college planning, retiring early, supplementing income in retirement, or taking cash out in lieu of a loan. The cash value can also be used as a supplement to the death benefit if needed.

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

Yes, you can cancel your variable life insurance policy in Glenview, IL. Since every policy is different, you should consult with your insurance company and review your policy to determine how and when you can cancel your policy. Depending on your insurance provider, you may be able to cancel at any time, but you may face fees or penalties. Additionally, cancellations may not be allowed if your policy is within the penalty period. If you have any questions, contact your insurance provider and they can help guide you on the process and explain all of the available options.

What are the tax aspects of a variable life insurance policy Glenview?

Understanding the tax implications of variable life insurance in Glenview, IL is important to maximizing the benefits of such a plan. Variable life insurance allows individuals to invest part of their savings in stock funds, but it is important to note that you will be taxed on any dividends or capital gains produced by the policy. Any withdrawals taken prior to age 59 ½ will incur a 10 percent penalty fee in addition to income tax penalties. It is also important to recognize that by giving up certain ownership rights, you may be able to reduce your total tax burden.

How often can I modify my investments in variable life insurance near Glenview?

You can change your investment choices with variable life insurance as often as you like, however, it's important to research your options carefully and make decisions in-line with your financial goals and needs. If you're based in Glenview, IL, a licensed Wealth Management Advisor can assist with helping you to assess your personal financial objectives and strategize solutions appropriate for your objectives based on the current market environment.

What are the surrender fees for a variable life insurance quote Glenview?

Surrender charges for variable life insurance policies vary in Glenview, IL depending on the policy. Generally, the surrender charge begins high (typically 7-10% of the account value) during the first year, then gradually declines for the duration of policy ownership. The exact amount of surrender fees can be obtained from the policy carrier or an independent financial professional who specializes in life insurance products. A churning fee may also apply if a policy is replaced prior to the expiration of the surrender period. These fees are typically a several hundred dollar penalty to discourage policy holders from frequent changes to their policies.

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

Variable life insurance may be an appropriate option for short-term coverage needs in Glenview, IL, depending on the individual's specific needs. Variable life insurance offers flexible terms and premiums, so a policy holder in Glenview, IL can adjust coverage levels accordingly to meet their short-term coverage needs. The policy holder also enjoys the ability to invest directly in the policy, which provides the potential of earning returns on their investments. However, it is important to note that potential investments returns are not guaranteed.

Can I direct specific investment strategies for variable life insurance policies near Glenview?

In Glenview, IL, the policyholder does not have the ability to dictate specific investment strategies for the cash value. Generally, the insurance company handles the investment decisions, which are typically made with the goal of providing a level of return that ensures the policyholder is able to retain their cash value while also allowing steady growth. The insurance company will also factor in the policyholder's age, interest earned, and any available tax benefits when making their investment decisions.

Are management fees for variable life insurance in Glenview similar to mutual funds?

In Glenview, IL, the management fees of variable life insurance are comparable to those of regular mutual funds. As financial products, both regular mutual funds and variable life insurance offer investors a chance to build their portfolios by investing in different types of assets. However, a key difference between the two is that while variable life insurance adds life insurance benefits, regular mutual funds do not. Since the costs associated with life insurance protection come in addition to the management fees, variable life insurance is often more expensive.

Can I use my Glenview variable life insurance policy for retirement savings?

Yes, variable life insurance can be used as a retirement savings vehicle in Glenview, IL. However, this type of life insurance offers more investment options than a traditional, fixed universal life insurance policy, allowing for more control over your retirement savings. Gain more control over how and when you take money out of your retirement savings with variable life insurance in Glenview. This type of life insurance policy allows you to invest in different types of funds, scout out potential investments yourself, and then move your money to and from different investment mixes based on your preferences.

What's the typical duration of terms with a Glenview variable life insurance company?

The typical duration of a variable life insurance policy in Glenview, IL, depends on the needs of the individual, but most policies range from one to thirty years and are renewable. Typically, a variable life insurance policy is chosen by someone who is looking for flexibility and the potential for cash value accumulation. The benefits of variable life insurance can be used as a retirement plan or to cover any future financial needs.