FAQ - Variable Life Policies

Variable life insurance is permanent life insurance with many characteristics of traditional whole life insurance.

Policyholders of variable life insurance select how the cash values will be invested. The cash value will, naturally, fluctuate in relation to the investment performance of the equities selected. Consequently, the cash value is not guaranteed, as it is in traditional whole life insurance. The cash value of the variable life policy becomes a part of the death benefit. A minimum death benefit equal to the face amount of the policy is guaranteed. Because there is a risk involved with variable life insurance, the federal government has labeled it a "security". State insurance departments and the Securities and Exchanges Commission regulates it.