Is Fixed-Premium Variable Life Insurance a Good Investment?

Generally speaking, do variable life policies provide an acceptable investment alternative for today's insurance buyer?

The rule of thumb is yes, variable whole life is an acceptable alternative for today's insurance buyer. Implicit in the assumption that it could be good for you are the following considerations:

1. You are insurable. You will have no trouble obtaining a new variable life insurance policy at acceptable rates.

2. You do not intend to commit suicide or perjure yourself by giving fraudulent information on any of the papers you complete to obtain a policy.

3. The creditor risk of the insurance company as it relates to the death benefit and to any general account investment alternatives is not a concern for you.

4. The policy provides you with sufficient control over the investment.

5. The policy is a multiple-pocket policy (provides a variety of investment alternatives).

6. The policy is inflexible with regard to premium payment and face amount, and this limitation is considered desirable or acceptable to you..