Investment Risk and Variable Contract Disclosures
Chapters in this video
What this video covers
- How traditional variable life differs from variable universal life, including fixed versus flexible premiums
- Why the policy owner bears separate-account investment risk, and why a separate account is not an insured bank deposit
- How low payments, withdrawals, loans, loan interest, and poor investment results can increase lapse risk
- What a prospectus explains about investment options, risks, and fee categories, and what it does not guarantee or personalize
- Why an investment option’s name does not establish its holdings or risk, and how diversification can reduce concentration risk without preventing every loss
- How policy charges and investment-option expenses both affect total costs, and why comparisons need the same time basis
- How to compare the example quotes: $700 per year for Quote A and $660 per year for Quote B
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