Variable Annuity Life Insurance is a kind of lasting insurance coverage. Like all lasting insurance coverage items, it has two parts:
The loss of life advantage, which is the money paid to the beneficiary when the insurance holder dies, and the built-up money value account to which interest is credited while the insurance holder is alive and paying premiums.
Insurance organizations are allowed to provide variable annuities along with insurance coverage coverage. People should be aware, however, that because variable annuities invest in the stock exchange, that the sales person should not only be licensed by the condition to provide insurance coverage but must also be registered with the Securities and Exchange Commission. He or she may also be required to have other licenses and registrations depending on the condition in which he or she sells the plan coverage and financial loans.
The owner of a flexible annuity insurance coverage coverage items can usually select among several different types of purchases. Some insurance coverage providers offer 20, 30, 40 or more kinds of purchases ranging from ultra-conservative to ultra-aggressive. People can also select between domestic and foreign resources. One of the best advantages provided by a flexible annuity insurance coverage coverage items is the almost instant diversification it can provide. If the investor chooses two or three sectors that are not connected to one another or dependent on one another for the results, he or she can create a relatively inexpensive “portfolio” of purchases.
One caveat to this kind of items is that the risks are solely that of the investor. He or she is responsible for choosing the purchases. While the plan coverage provider purchases the resources and manages the consideration on the investor’s behalf, the results, or losses, reside with the investor.
Some insurance coverage providers allow the insurance holder to select between a resolved and variable loss of life advantage. The loss of life advantage on a resolved plan is set when the plan is written. It is for that quantity and that quantity only, regardless of how much money has accumulated in the consideration. A variable loss of life advantage pays not only the face value of the plan but also the money that has designed up.