What Is Variable Life Insurance?

WHAT IS VARIABLE LIFE INSURANCE?

Within this policy you are the one who directs how your cash value should be invested, which in turn you are the one who bears the investment risk. You should keep in mind that, in turn, your death benefit is is also linked to the performance of your policy where your investment decisions determine your cash value as well as your death benefit.

This type of insurance policy has no guarantee for interest rate or minimum cash value, where theoretically your cash value can go to zero and your insurance policy can terminate.

Due to higher risks associated with this policy, the insurance company who sells this type of insurance policy has to be registered with SEC, where agents who sell this type of policy have to have both life insurance as well as securities license.