Life Insurance Basics
What is variable life insurance?
Variable life insurance is a type of permanent life insurance where the cash value is invested in sub-accounts (similar to mutual funds). The cash value and death benefit can increase or decrease based on investment performance. Variable life has the highest growth potential but also the highest risk.
Key Points
- Variable life: cash value invested in sub-accounts
- Cash value and death benefit can increase or decrease
- Highest growth potential of all life insurance types
- Highest risk — can lose principal
- Regulated as a security — requires licensed securities representative