Variable Life Insurance vs. Variable Universal Life Insurance: A Comparison by CHARLENE RHINEHART, Updated August 31, 2022
An Overview Variable life insurance products let you put a portion of your premium into the investment fund of the insurance company. If the fund grows, your beneficiaries can get more money without paying taxes.
The investment opportunity is the same for variable universal life insurance products, but there are additional features. You can invest the cash value of these whole-life policies, and the premiums and death benefit are flexible.
Key Takeaways A variable life insurance policy combines the advantages of a variable policy with a whole life policy by allowing the majority of premiums to be invested in an investment account.
The fluctuation in cash value and death benefits caused by the performance of investments is one of the main risks associated with both kinds of policies.
The tax-deferred growth of the cash values of both types is a significant advantage.
There are options for both fixed and variable death benefits in variable universal life insurance policies.
