Variable Life Insurance

Definition - What does Variable Life Insurance mean?

Variable life insurance is a type of whole life or permanent life insurance that has an investment component. The investment component allows cash value to build over time if the investments go well.

In the context of the law, variable life insurance is subject to securities laws, due to the fact that there is an investment component to them.

Justipedia explains Variable Life Insurance

Variable life insurance is called "variable" life insurance because the cash value of the policy can vary significantly, depending on the performance of the investments.

With variable life insurance, a part of the premium is used to pay for death benefits, and the other part goes toward the investing.

Variable life insurance provides life insurance coverage for the entire life of the policyholder. In this way, it is different from term life insurance, which only provides life insurance protection for a specific term.

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