What is Variable Life Insurance Policy?
Definition of Variable Life Insurance Policy
Variable life insurance policy is a type of permanent life insurance coverage. This type of policy offers one component for permanent death benefit proceeds whereby funds will be available to a beneficiary for paying off final expenses and other financial needs of the insured’s survivors. The other component in variable life insurance is used for investing.
If your investments perform poorly, you may be asked to forfeit your savings.
If you invest well, your cash value gain can be substantial. The cash value portion of the policy is not taxed until the policy is redeemed.