Presentation

That raises an interesting question: should you choose a fixed or variable policy?

A fixed policy offers a guaranteed, fixed return. It’s dependable—though more conservative.

A variable policy offers some degree of investment flexibility. The policyholder allocates his or her premiums to different investment subaccounts. This gives the policyholder access to the potentially higher returns provided by the financial markets. It also means there is a risk of lower return.

Whether you choose a fixed or variable policy will depend on your individual situation. You’ll need to take into account your complete finances, including your cash reserves, your investment portfolio, and any business interests. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.