Texas Life Insurance Quotes Company: Variable Life Insurance

Texas Life Insurance Quotes Company can provide you with quotes from variable Texas life insurance companies. We do not provide variable Texas life insurance policies-- we simply refer your information to a licensed professional who best matches your needs.

Variable life insurance gives you the flexibility to choose the amount of protection that best suits your family. It allows you to increase or decrease coverage as insurance needs change. You may not decrease your coverage below the required minimum. With variable life insurance, you control the amount and frequency of payments.

You can allocate a portion of each variable life premium to one or several investment divisions or a fixed-rate general account option. The investment divisions include stock, bond, balanced, international, and money-market portfolios. Earnings within the investment divisions will vary with market conditions and your principal may be at risk. Premium payments plus investment earnings, less Texas life insurance policy fees and charges, serve as your policy's cash value. It should be noted that a decrease in your policy's cash value may decrease the overall amount of insurance coverage. Most mutual funds also require a minimum dollar amount to participate in a particular portfolio.

Investing in vehicles like mutual funds is still a solid strategy to follow. But you have to have the discipline to carry this out. If you neglect to put money aside for the future, the "buy term and invest the difference" strategy collapses. Without the 'invest' portion, you are left with a term policy that is incapable of accumulating funds for the future.

As your insurance needs change, it is quite probable that your long-term investment goals and risk-tolerance levels will also change. With variable life, you have flexibility to transfer funds between the investment divisions without paying taxes. So you have the freedom to make decisions based on your needs and not on the tax limitations. Note that many variable life policies restrict transfers from a fixed account to the investment divisions.

Mutual funds are also fairly liquid investments. There are no loan privileges, and withdrawals of earnings may be subject to surrender charges and current income taxes. Variable life policies may also charge a surrender charge for withdrawals. In addition, the tax treatment given to funds in a variable life policy is on a first-in, first-out basis. This is advantageous should you wish to create a stream of income at retirement. One potential option involves receiving withdrawals until reaching your cost basis then changing the method of withdrawals to policy loans. The tax treatment given to dollars in a mutual fund is on a last-in, first-out basis. This places mutual fund owners at a distinct disadvantage when trying to access account values.

Protecting loved ones is one of the reasons for purchasing any type of Texas life insurance from a qualified company. Both variable life and term insurance policies offer a death benefit, and both policies can be structured so your beneficiaries receive the proceeds estate and income tax free. Keep in mind that any portion of the 'invest' component not used in one's lifetime may be subject to both estate and income taxes. As a result, your beneficiaries may receive a lesser amount than originally anticipated.

Be sure to discuss your options with an insurance professional. He or she will help you look at the big picture and recommend suitable solutions based on your objectives.

---

To receive any type of life insurance quote today, just visit our "Texas Life Insurance Quote" section, fill out the form and a licensed insurance agent will contact you directly. Texas Life Insurance Quotes Company does not sell life insurance, instead we take your information and pass it on to a licensed insurance agent in your area.