If an insured under a variable life insurance policy does , how will the insurer respond to outstanding policy loans

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08-10-2021
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If an insured under a variable life insurance policy does , how will the insurer respond to outstanding policy loans

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Tundexi Tundexi · Answer 1 · 2021-10-15T18:18:59+02:00

Variable life insurance is quite different from policies like Conventional Whole life assurance, Fire Insurance, Motor Insurance, House-owner Insurance etc.

This type of life insurance provides permanent life insurance policy with an investment component which acts similarly to a mutual fund investment.

It is important to understand that the policy does provide loan out features to the life assured if the policy have been in existence for long.

In conclusion, the loan are not required to be paid back, rather, they will be deducted from the Cash value (Benefit payable) on the Variable life insurance policy.

Learn more about this policy here

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