Variable Life Insurance

A permanent life insurance policy with an investing component is known as variable life insurance. The insurance policy contains a cash-value account where money is kept and is often invested in mutual funds.

Variable life insurance provides a death benefit to your dependents upon your passing, just as a permanent life insurance policy does. and the coverage continues until your passing (in contrast to a term policy, which has a set term).

The cash value portion of variable life insurance may increase or decrease in value since it is invested in assets like mutual funds. Consequently, these plans are riskier than other types of life insurance. To lower total risk, you may often dedicate a part of your premium to a fixed account that offers a rate of return guarantee.