The number one reason people buy variable life insurance and universal life insurance is to “fund” for final expenses. This “pre-funding” eases the financial burden for the people left behind. Final expenses can include funeral costs, taxes or debts. The replacement of the financial support that the insured provided is just as important and can be “pre-funded.”

Leaving your loved ones financially secured after your death can be accomplished with either variable life insurance or universal life insurance. The accumulated cash value within both types of policies can also be used by the insured during his lifetime. Both types of life insurance are called permanent life insurance policies.

Permanent life insurance policies have a cash value feature. The cash value can be used as a resource throughout the insured’s life. At any time throughout the term of the insurance policy the insured may surrender the policy for the cash value. The insured can borrow against the cash value for emergency expenses, funding a child’s college education or to make a down payment on a new home. The insured is not required to repay that loan. But, any unpaid loan balance will reduce the cash value and the death benefit.