Investor Glossary-variable lifeInvestor Glossary-variable lifeInvestor Glossary-variable lifeInvestor Glossary-variable lifeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Variable Life

The HTML to link to this page
 

Variable life is a type of whole life insurance that allows one to invest in various combinations of stocks, bonds and money market funds (chosen from the funds offered by the insurance company). The cash value of variable life is dependent on the performance of these investments, though the death benefit of variable life insurance won't drop below a certain minimum. Returns from variable life aren't guaranteed, and the policy holder assumes the risks rather than the insurance company. Due to the investment risks, variable life policies are considered security contracts; this means that variable life must be regulated under federal securities laws. Agents who sell variable life, for example, must be registered representatives of a broker/dealer licensed by the NASD and registered with the SEC. An advantage of variable life policies is that the policy holder isn't taxed on the earnings until the policy is surrendered. Interest earned on the investments may also be applied to the premiums of variable life, which could lower the amount the policy holder pays.



Rate this variable life definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, quality assurance, 144a, VIX, limit order, inflation, labor relations, reverse mortgage, in escrow, diluted share, ex-dividend, wholly-owned subsidiary, APR, deferred tax, FTSE, 1031 exchange, ex-dividend date, per diem, open position, debt service coverage, retained earnings, margin rate, Zero Cost Collar, balance sheet, liquidity ratio, implied volatility, required rate of return, irrevocable trust, 401a, dividends payable, option premium, stock split, real GDP, Key Rate Duration, phantom income, FICO score, annual return, stock market close, 1035 exchange, cancelled check, command economy, EBITDA, deferred revenue, covered put, class C shares, current ratio, LIBOR, risk management, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use