Life Insurance
What is variable life insurance? Why is it such a bad deal for the individual and such a good deal for the life insurance agent and the life insurance company?
What is variable life insurance? Why is it such a bad deal for the individual and such a good deal for the life insurance agent and the life insurance company?
This type of policy wraps your investments (managed mutual funds in most cases) in a protective and very expensive blanket of life insurance.
It is a bad deal because of the yearly cost that are baked into the product (you don’t see them). How much? 2 – 3% is the norm. Those costs are used to pay the high commissions paid to the insurance agent, which is why the agent pushes them down the throat of the unsuspecting client.
Stay away from variable life insurance and that means staying away from your local life insurance agent!