Series 66: 3.7.3 Variable Life Insurance

3.7.3  Variable Life Insurance

With a variable life insurance policy, the death benefit as well as the cash value of the policy fluctuate depending on the investments chosen by the client. For variable life insurance contracts, insurance companies invest the premiums paid into both their general accounts and their separate accounts. 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. This means the investor takes on some risk in exchange for the potential to grow the cash value of the account. The cash value o