Variable Life Insurance


Steve Kobrin, LUTCF
The firm of Steven H. Kobrin, LUTCF, Fair Lawn, NJ

Under the right circumstances, variable life insurance can receive favorable tax treatment and offer the chance to make money in the market and not pay taxes.

First, you have to qualify for a low premium. If the cost of insuring you is too high, it will significantly impede your cash growth.

Second, this product is treated legally as a security and rightfully so. Like any investment, you have to manage risk and reward, factor in expenses, stay on top of asset allocation and do everything else needed to ensure optimum performance. If you are not prepared to do this yourself, make sure you have an advisor who will.

You also need to understand how to work within existing tax laws. There’s a right and wrong way to grow cash inside life insurance and take it out. Mistakes can be very costly.

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