Variable Life Insurance

A variable life insurance policy is part insurance and part investment. Part of the policyholder’s premiums pay for expenses and the insurance part of the policy, the remainder goes into a tax-deferred cash reserve which is invested and builds the policy's cash value.

Unlike whole life and universal life policies, variable life policies provide the policyholder a range of investment options, and the rate of return is based on the performance of the options chosen by the investor. The investment options are typically mutual funds. Some variable life policies, however, also provide a fixed account option which pays a set rate of interest. 


This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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