Variable Life Insurance in Lenexa, KS

Who should think about variable life insurance Lenexa?

Residents of Lenexa, KS who are looking for an insurance product that combines the potential for protection and growth should consider purchasing variable life insurance. Not only does variable life insurance provide benefits such as death benefits and cash values, but the policyholder can also take advantage of the potential tax benefits associated with the premiums paid. Variable life insurance may also be a good choice for those who want to customize their policy with different investment options, yet require the Flexibility to change those options as needed.

Do variable life insurance quotes in Lenexa come with a cash surrender value?

In Lenexa, KS, variable life insurance has a cash surrender value based on the internal rates of return of the variable accounts. These accounts generally include equity accounts, debt accounts, and money market accounts. When someone with a variable life insurance policy passes away, the beneficiaries are paid the death benefit, which is the greater of the cash surrender value or the face amount. The cash surrender value grows based on the performance of the underlying investments.

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

The tax implications for variable life insurance can depend on the conditions of your policy and where you live. In Lenexa, KS, taxes for variable life insurance are determined based on whether the accumulated cash value is used as a lump sum, a partial withdrawal, or as loan collateral. Withdrawals are taxable as ordinary income, and loans taken from the cash value are not taxable. Additionally, if the death benefit is paid as an annuity, then the premiums received are included in the taxable estate, but the earnings are not.

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

In Lenexa, KS, policyholders can typically reassess and change their investment choices within their variable life insurance policy once every year. This means you can review your investment choices, swap them out for other options, and adjust the allocating percentages of your portfolio at least every twelve months to ensure your investment strategies reflect your needs and financial goals. As always, it is important to discuss your changes with your financial advisor to help make sure your decisions are the right fit.

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

The surrender charges for variable life insurance can vary depending on the specific plan chosen, so it is best to speak with a local insurance agent in Lenexa, KS to learn about the individual costs associated with the product. Generally, the longer the policy has been active, the lower the surrender charges may be. It is important to consider all elements of a variable life insurance policy, as the surrender charges should be a factor in your decision.

How does the death benefit change with investment results in Lenexa variable life insurance companies?

The death benefit amount in Lenexa, KS varies drastically depending on the performance of the investments made. Generally, the more successful the investments are the better death benefit will be paid out to the beneficiaries. It is imperative that investments in stocks, mutual funds and bonds are carefully managed to yield the highest return possible, to ensure that the loved ones of the deceased receive the highest amount of money possible upon their death.

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

Variable life insurance offered in Lenexa, KS does not guarantee any specific investment returns. The guarantee of this type of insurance is that the death benefit will not decrease, even if the investments do. With variable life insurance, the policy owner can choose their investments, which can help manage their risk/reward according to their individual needs. This is different from traditional life insurance, which does not provide the same degree of flexibility, but offers more guarantees on their return.

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

Yes, the management fees for variable life insurance in Lenexa, KS are typically comparable to those for regular mutual funds. Both kinds of investments require an up-front cost, and then an annual management fee, which can vary depending on the product and the provider. Generally, the management fees that accompany variable life insurance policies are slightly higher than those associated with mutual funds; however, this cost is typically offset by the other benefits that come with the policy. Ultimately, it's important to do your research and compare the fees so you can make the best decision for your financial situation.

Is the cash value in my Lenexa variable life insurance policy safe from creditors?

In Lenexa, KS, the cash value in variable life insurance is safe from creditors claiming your assets. Kansas is one of the numerous states that has adopted the Uniform Fraudulent Transfer Act, which provides bankruptcy and creditor protection for the policy's cash value. Additionally, in Kansas, life insurance assets are protected from creditors even if forced by a court to make a financial decision. So, if you live in Lenexa and have a variable life insurance policy, you can rest assured that your assets will be safe from creditors.

How do loans affect death benefits with my Lenexa variable life insurance company?

In Lenexa, KS, policy loans from variable life insurance impact the death benefit in that any outstanding loan amount will be subtracted from the death benefit. This holds true regardless of whether the loan was taken out by the insured, the policyowner, or both parties. When a death benefit is reduced in this way, the beneficiary may receive substantially less than the policy's face value. For this reason, it's important to maintain awareness of the balance of any outstanding policy loans and to factor that into your financial planning.