Variable Life- variable life insurance is a type of whole life plan where the cash values and death benefit fluctuate based on the investment performance of stocks, bonds, mutual funds, and other investments. This product provides lifetime coverage and premiums are ordinarily level. Very few insurance carriers offer variable life products today, but those who do must offer it via a prospectus. This product is regulated by the SEC, as it is a securities product rather than a fixed insurance product.

ADVANTAGES OF VARIABLE LIFE

• Potential for higher cash values than non-variable products
• Potential for greater death benefits than non-variable products
• Provides coverage for the lifetime of the insured
• Allows policyowner to take control of fund allocation
• Provides a minimum death benefit regardless of policy fund performance

DISADVANTAGES OF VARIABLE LIFE

• Do not guarantee a minimum cash value
• Policyowner assumes the risk
• Inflexible premiums and death benefits
• High cost relative to other types of life insurance

Value proposition of Whole Life: strong guarantees