The Truth About Variable Insurance

1. Insurance planner I Yujeong argues in her column that variable insurance is insurance, not an investment product, and that people should not be swayed by advertised returns.
2. The writer explains that only 70 to 90 percent of premiums are invested in funds, with costs deducted during the first 7 to 10 years, so it typically takes 7 to 10 years to recover the principal.
3. The writer advises subscribing only if the policy can be held for at least 15 years, and says general funds or ETFs are more advantageous for purely investment-oriented goals.

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