Variable Life Insurance is a permanent policy for which premiums can be adjusted based on the performance of underlying investments.
Benefit amount can increase over time but will not go below a certain threshold.
The policy owner can participate in how well a policy performs. Earnings may be appliced to premiums, which means
that the actual insurance could cost less too.
Many life insurance financial actions are not taxable events. This means that the policy owner
could borrow against the policy, grow the cash value, or leave a death benefit without creating a tax bill.
As with any market based product there is a risk that the policy owner could lose cash value. This
also means that the premiums which keep the insurance in force could be more expensive. If the funds
do not perform well, the death benefit could decline, but not below the policy minimum.
Some policies may come with a defined minimum growth or death benefit to protect the policy owner and
minimize risk.
