Series 7: 8.3.3 Variable Life Insurance

8.3.3  Variable Life Insurance

With a variable life insurance policy, the death benefit, as well as the cash value of a policy, fluctuates depending on the investments chosen by the customer. For variable life insurance contracts, insurance companies invest the premiums paid into both their general account and their separate account. In this way, variable life insurance is like a variable annuity or a mutual fund. The separate account allows the investor to select from a variety of investment choices. With this, the investor takes on some risk for the upside potential of growing the cash value of t