What is Variable Life Insurance?

Variable life insurance is a type of life insurance quite similar to whole life insurance, a life insurance policy with an investment account attached to it.

It protects you against death, but also has a savings account in which the cash value can be invested in such instruments as stocks, bonds or money market funds. The policy holder gets to select his investments from those made available by the insurance company, and he assumes the investment risk since the death benefit and cash value go up and down with the value of his investment fund. The insurance company will guarantee a certain minimum death benefit, however.