Premium Type

Variable annuities offer either a Flexible Premium or Single Premium payment plan. In addition, a variable life may have a Modified Premium, or Fixed Premium payment plan, depending on whether the contract is a VL or VUL.

Benefits

Investors will want to study a variable product's premium type to understand how it could impact the overall investment. Various premium types are more or less advantageous, depending on an investor's needs.

Origin

This information is taken directly from the contract's prospectus.

For the Pros

About Single Premiums

This is perhaps the most investment-oriented payment plan, because it funds a contract with the first, and only, premium. Some single plans, however, will allow subsequent contributions to be made, but only within strict guidelines.