Variable Policy

Variable life policies have become the preferred option for those who wanted to keep their assets invested in an assortment of funds of their choice and also wanted to directly benefit from favourable investment performance of their portfolio. A prime condition for their purchase is that the purchaser must be able and willing to bear the investment risk on the policy. This implies that variable life policies should be typically bought by people who are knowledgeable and quite comfortable with equity / debt investments and market volatility. Obviously, its popularity would depend on investment market conditions – thriving in market booms and declining when stock and bond prices plummet. This volatility has to be kept in mind while marketing variable life.