Variable Life Insurance in Richland

What variable life is, and who it suits

Think of a variable policy as two pieces sharing one contract. The first is the insurance itself, which pays your beneficiary when you die. The second is a cash value account split among subaccounts that behave a lot like mutual funds. Good years for those funds lift your cash value. Bad years pull it down, and on some designs the coverage amount moves with it.

So this policy fits a fairly small group. You already have core protection for your family, you want coverage that lasts for life, a falling market will not rattle you, and you intend to keep the policy for decades. People who prefer a set premium and steady, predictable growth usually do better with whole life or universal life. People who mainly need a large amount of coverage at a low cost tend to land on term life.

Selling a policy that holds investments takes an additional license. Ours include a Variable Life & Variable Annuity license and a Life & Health Insurance license, so one agent can walk you through both the coverage and the investment side.

What we go over with you

The prospectus, in everyday words

Every variable policy ships with a long prospectus that few people read. We go through the sections that affect you most: the charges, the fund menu and how surrender penalties shrink over time.

What each subaccount holds

Stock funds, bond funds and a fixed account all move differently. We describe how much each tends to swing, and you set the mix.

Illustrations at more than one return

We run projections at a strong rate, a middling one and a weak one. You see what your cash value and coverage could look like if markets let you down.

Other policies on the same table

If term life or whole life would do the job better, we put it beside the variable option and tell you plainly.

Your coverage on a single page

Once the insurer issues your contract, we prepare a one-page summary for your files. It sets out the coverage you own, the premium you pay and the people it is there to look after.

An annual check-in we book for you

We put your yearly review on the calendar ourselves. For a variable policy we look at how your subaccounts did and confirm your beneficiaries are still the right people.

When a variable policy might fit you

• Your base protection is handled

  Enough term life already stands behind your family. Now you are thinking about a permanent layer that builds value.

• You are in it for decades

  Surrender charges make early exits costly. This policy tends to reward people who hold it twenty years or longer.

• A down year will not shake you

  If seeing your account fall would push you to cancel, a fixed policy is the kinder choice. If you can sit tight, variable life may suit you.

• You want to choose the investments

  With whole life, the insurer decides how your cash value grows. Here you pick the funds and live with the outcome.

How we work through it together

1. 1

   Getting to know you

   We meet at our office or over video. You tell us about your family, your income and any coverage you carry now, and we mostly listen.

2. 2

   Comparing real options

   You see a variable policy next to one or two alternatives, each with its illustration and fee schedule. No pressure and no jargon. You take the time you need to decide.

3. 3

   Application and underwriting

   If you move forward, we help with the forms, the health questions and any exam the insurer requests. We keep you updated while underwriting runs its course.

4. 4

   Delivery

   Once the policy arrives, we read through it with you, confirm your subaccount choices and make sure each beneficiary is named correctly.

5. 5

   Staying current

   Let us know when a child arrives, you buy a house or you change jobs, and we adjust your coverage within a week. Your yearly review is scheduled by us, not left to memory.

What shapes the cost of a variable policy

Expect a variable policy to cost more than term life, and to ask more of you than whole life in terms of pieces to understand. Part of every premium goes to the insurance charge, part to the insurer's administrative fees, and part to the expenses inside each fund. We put all of those in writing for you before you sign anything.

Age and health

Applying younger and in good health lowers the monthly insurance charge drawn from your policy.

Amount of coverage

More coverage means a higher insurance charge, and it comes out in rising and falling markets alike.

Fund expenses

Each subaccount carries its own management fee. Actively run funds often cost more than index-style choices, and that gap adds up across many years.

Policy charges and surrender penalties

Mortality and expense charges, admin fees and the surrender schedule differ from one insurer to the next. Walking away early can take a real bite out of your cash value.

Optional riders

Extras, such as coverage for your children, each carry their own charge. We go over what every rider does so you pay only for the ones you want.