Life Insurance Direct What Are The Pros And Cons Of Term Insurance | Page 21

Variable Life Insurance – This policy allows for a little more leeway on the investor’s part. There is
always a guaranteed minimum amount that the policy will cover, but there are also funds that can
be invested. This does involve the potential for a much higher reward.
The downside is the investments may not yield returns or they might even go bust. As a result,
the amount that the death benefit will pay out can fluctuate a great deal.
Universal Life Insurance –This coverage allows for the person to decide how much they want to
go into a cash value portion and how much goes into the death benefit. This allows a person to
withdraw part of the amount accrued to pay off debts or buy a home, but once it’s gone, it’s
gone!