Variable Life Insurance in Lantana, FL

How is variable life insurance Lantana different from other policies?

Variable life insurance is a type of life insurance policy that allows policyholders in Lantana, Florida, the flexibility to choose their investments within the policy. Unlike other life insurance policies, the policyholder's premiums are invested in different investment vehicles instead of paying the insurer a premium, ultimately allowing the policyholder the opportunity to potentially earn money over time, in addition to the death benefit their policy accrues. With variable life insurance, the policyholder receives a death benefit, and has the chance to build equity based on their investment decisions, while also offering more relaxed estate planning options.

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

Canceling a variable life insurance policy is not typically recommended as your policy can have a current cash value that you may be forfeiting if you choose to cancel it. However, if you live in or near Lantana, FL, you should speak with your local insurance agent if you wish to cancel your policy in order to learn more about what your options may be to recover what you’ve invested. You would likely be able to recoup the cost of the policy minus any deducted fees.

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

When it comes to the tax implications of variable life insurance in Lantana, FL, one must first understand the specifics of the policy. Variable life insurance combines a death benefit with an investment feature within an insurance policy. The cash value of the policy is considered an investment and is subject to taxation of any income generated from the policy, while the death benefit from the policy generally is tax-free. In addition, the premiums are not typically deductible for income tax purposes in Lantana, FL.

What fees are there with variable life insurance near Lantana?

The fees associated with variable life insurance in Lantana, FL can vary, but they typically include charges for opening, maintaining, and closing the policy. Any additional fees, such as surrender charges or activity fees that apply to an individual policy, may apply. However, these fees are usually in place to help ensure that the policyholder is making wise investment decisions that will help to strengthen their return. Additionally, any insurance provider in Lantana, FL will provide an overview of the different fee structures applicable to the policy the individual is considering, as well as the potential benefits of each option.

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

In Lantana, FL, you can add riders to your variable life insurance policy, which can be customized to meet your specific needs and objectives. Riders are optional features that can provide protection for your family, usually for a nominal fee. Depending on the issuer and the policy, available riders can include accelerated death benefits, living needs benefits, and other benefits features like accident disability, accidental death benefits, terminal illness benefits, and others. Contact your life insurance provider to discuss which rider options are available for your particular policy.

Are there limits on fund transfers in Lantana variable life insurance companies?

Yes, there are limitations on fund transfers within the policy specific to Lantana, FL. Fund transfers within Lantana require users to use a state-approved financial institution that adheres to regulations. Additionally, there may be a daily and/or monthly limit on fund transfers depending on the institution and the user's account type. To learn more, users should review the local policy for fund transfers in Lantana, FL.

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

At Lantana, FL, the policyholder has the ability to customize their policy’s cash value investments according to their needs through policy loans and distributions. Depending on the type of policy they have, they may be able to select investments from a list of approved offerings or be able to choose from an array of complete portfolios and funds. Ultimately, as long as the policyholder is comfortable with the investment strategy, they can tailor the cash value of their policy to fit their goals and risk tolerance.

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

Yes, the management fees for variable life insurance can be comparable to regular mutual funds; however, in Lantana, FL it is important for individuals considering life insurance to note that the fees associated with variable life insurance policies are slightly higher than other comparable insurance products due to the additional account features. Additionally, life insurance companies often change their fee structures and adjust the associated costs. Therefore, it is important for anyone interested in a variable life insurance policy to review the associated fees before making a decision.

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

Yes, variable life insurance can be used as a retirement savings vehicle in Lantana, FL. This type of insurance can provide you with a combination of both death benefit protection and cash value accumulation. The cash value grows on a tax-deferred basis, and you can access those funds at retirement based on what type of coverage you have and how the policy is structured. Funds can be accessed in the form of a loan or withdrawals; however, money withdrawn may not be applicable to future cash value growth, which in turn, could affect your death benefit coverage.

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

In Lantana, FL, variable life insurance policies may offer the potential to receive dividends depending on the insurer and the specific type of policy. Dividends are typically based on the cash value of the policy and can vary from year to year depending on the performance of the investment. If your policy does qualify for dividend payments, you may have the option to take them in cash, use them to pay premiums, or even reinvest them back into your policy. Speak to your insurer for more details of what options you may have.