All Topics > Insurance > Variable Life Insurance >

Variable Life Insurance New York

Variable life insurance allows people to purchase insurance policies and have the insurance company invest the premiums to allow for the growth of the policy in a tax-sheltered account.

1. Local Companies

2. Explanation of Variable Life Insurance

3. Tax Advantages of Variable Life Insurance

4. Benefits of Getting Variable Life Insurance

5. Featured Local Company

1 . Local Companies

Joseph Israel - Northwestern Mutual Financial Network
(212) 819-9730
245 Park Ave
New York, NY

The Cornell Group LLC
212-736-0220
350 Fifth Ave.
New York, NY

Vivian Lem State Farm Agency
914-725-5000
590 Central PArk Ave
Scarsdale, NY

Allstate Insurance Company - James Sheppard
(212) 421-5830
515 Madison Ave S
New York, NY

National Quotes Online
(718) 748-3366
6922 8th Avenue
Brooklyn, NY

Allstate Insurance Company - James Heins
(212) 475-1103
302 East 19Th St
New York, NY

New York Life Insurance Company - Randy Scott
917-587-5900
100 Jericho Quadrangle
Jericho, NY

THE ROBERT C. MANGI AGENCY INC
(516) 294-1072
152 MINEOLA BLVD.
MINEOLA, NY

Insurance4USA.com, Inc.
716-677-5735
3959 North Buffalo Road
Orchard Park, NY

Allstate Insurance Company - Thurman Mckoy
(212) 769-2899
162 W 72 St
New York, NY

2 . Explanation of Variable Life Insurance

Most people are familiar with what is called whole life insurance. In this type of insurance policy, the holder purchases a policy for a set amount each month. This monthly premium typically changes little, if any, over the course of the policy. The payout on these policies also is set at the signing of the contract.

Variable life insurance works a bit differently, however. In this type of policy, the policyholder buys the policy based on the investment of a certain amount of capital. This money then is invested in various stocks or mutual funds, depending on the insurance company offerings and the owner’s choice, and the money earned through this investment is used to determine the payout for the policy.

This type of insurance policy works for people who have significant money to invest in the policy and who want a temporary tax shelter for that money. For other people, though, the variable life insurance policy is more work than they want in a life insurance policy. The whole life policies can be a better choice because they give a guaranteed payout and payment every month.

The variable life insurance policy has the potential to be worth more money, however, and has the benefit of being useful if the person does not want to pay for the policy indefinitely.

3 . Tax Advantages of Variable Life Insurance

Variable life insurance policies have an interesting advantage over regular life insurance policies and investments. For the most part, money made through investments is taxed annually as part of a household’s income. Because life insurance policies are intended to cover expenses and liabilities in the case of death, the federal government does not tax any money made from investing variable life insurance funds.

This tax advantage basically means that the life insurance policy can continue to earn money without the holder paying anything at the time. The money earned in one year continues to grow over time as the money is reinvested throughout the life of the policy.

Holders of variable life insurance policies do have the option of getting out of the policy, however. These policies have a “cash value,” which is the amount the person can get at a certain point in time by cashing out the policy. If the person opts for the cash-out of the variable life insurance policy, then the government taxes all of the interest earned as income tax. Knowing how much of this money will go toward income tax payments is helpful in determining the real value of cashing out the policy or leaving it until one dies, then allowing it to roll over to the estate. These decisions can get very complex quickly.

4 . Benefits of Getting Variable Life Insurance

The primary benefit of a variable life insurance policy is that the owner of the policy can opt to cash out the policy to receive money rather than waiting for others to inherit the money. With whole life insurance, you will lose out on any money you have paid toward the premium if you opt not to pay or cannot pay any longer. With a variable policy, however, you will be able to get certain cash value, based on the growth of the investments associated with the policy, if you need to cancel the policy.

Variable life insurance policies also grow so that you can get more money than you anticipated if your insurance company is able to offer sound investment choices for this policy. The insurance policy does not stagnate. With whole life policies, some people feel they are paying into a system without much choice in how much they are paying or how much they will get. With a variable life insurance policy, the policyholder is able to exert more control over the final dollar amount he or she will receive because of the investment property of the policy.

Another major benefit is that the money earned on investing the premiums is tax-sheltered instead of being taxed as household income as would happen with other types of investments.

5 . Featured Local Company

Mercer Health and Benefit Consultants

585-389-8725
175 Sullys Trail
Pittsford, NY
http://www.mercerhb.com

Read more about Variable Life Insurance

- Beneficiary New York

The beneficiary is the person that receives money or some other form of assets, usually when someone dies. The person or person may be named as the beneficiary of a life insurance policy or as a beneficiary of a will or trust.

- Reduced Paid-Up Insurance New York
- Why To Choose Term Life Insurance New York
- Sole Proprietorship Insurance New York
- Whole Life Insurance New York
- How Health Insurance Policy To Benefit Us New York
- Universal Variable Life Insurance New York
- Adjustable Life Insurance New York
- Family Income Policy New York
- Universal Life Insurance New York

Regional Articles

- Reduced Paid-Up Insurance New York

Having reduced paid-up insurance is an option one may take when starting a life insurance policy. This option can help pay for a policy premium in the event of a job loss, medical problem, or situation that may cause a payment to the policy to be either late or not made. A reduced paid up insurance option may be right for your policy.

- Adjustable Life Insurance New York
- Universal Life Insurance New York
- Whole Life Insurance New York
- Beneficiary New York
- Family Income Policy New York
- Why To Choose Term Life Insurance New York
- Sole Proprietorship Insurance New York
- Universal Variable Life Insurance New York
- How Health Insurance Policy To Benefit Us New York

Related Local Events

December Wellness
Dates: 12/18/2008 - 12/18/2008
Location: New York Life
New York NY
View Details

Heartsaver AED/CPR Wall Street
Dates: 12/9/2008 - 12/9/2008
Location: Wall Street Caf?egational Churchrciationon County Life Long Learning Center (Library/UT Extension Office)more.hts, Eggertsville and Buffalo.
New York NY
View Details

Join Us for a Business Breakfast-Retirement Planning Seminar
Dates: 12/3/2008 - 12/3/2008
Location: Morgan Stanley
New York NY
View Details

Heartsaver AED/CPR Wall Street
Dates: 11/27/2008 - 11/27/2008
Location: Wall Street Caf?egational Churchrciationon County Life Long Learning Center (Library/UT Extension Office)more.hts, Eggertsville and Buffalo.
New York NY
View Details

Meet & Greet Networking
Dates: 11/21/2008 - 11/21/2008
Location: Greater New York Chamber Office
New York NY
View Details

Advertising	Health	Legal
Business Services	Home Services	Real Estate
Education	Insurance	Software
Family	Internet	Telecommunications
Financial Services

Advertising	Financial Services	Insurance	Real Estate
Business Services	Health	Internet	Software
Education	Home Services	Legal	Telecommunications
Family

Searching...