YOU ASK:

What is the definition of Variable Life Insurance?

WE ANSWER:

Variable Life Insurance is a permanent life insurance policy that provides life insurance protection, as well as a savings component where the earnings are tied to the performance of the different investment instruments (usually composed of bonds, mutual funds and stocks).

The policy owner may choose to allocate the cash value among a wide range of opportunity and risk. These returns are not guaranteed, but it provides the opportunity for the policyowner to increase the value of the account.

The cash value is allowed to build up by getting the remaining balance after the life insurance cost and other fees are deducted.

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