Variable Life Insurance

(The easy and affordable way)

Written by Jessica Huneck
Written by Jessica Huneck

Jessica Huneck is an insurance writer from She began her writing career in 2011 and has since earned herself a bachelor's degree in English writing.

young family, being playful outdoors in nature covered in snow

Making the decision to purchase life insurance is an important milestone, but choosing the right plan is essential. Do you want greater flexibility with your life investment product? Are you willing to take risks with your investments? 

A variable life insurance policy may work for you, but it’s important to understand how it compares with other plans and how it affects your long-term goals. You can search the Internet to learn more about variable life insurance, or you can contact a knowledgeable professional who will assess your personal needs.

Working with an independent agent in our network who specializes in life insurance is a great way to find out whether a variable life insurance policy is right for you. 

Independent agents work with multiple insurance companies and can compare policies and quotes to find a variety of options and rates that suit your unique needs. To get all of your questions answered, contact a local agent today.

Variable Life Insurance Facts

  • Variable life insurance is a form of permanent life insurance.
  • It’s effective for your entire life as long as you pay premiums.
  • It includes a death benefit.
  • In addition to your cash value option, you also have stock investments.
  • This life insurance plan has tax advantages.

Save on Life Insurance

Our independent agents shop around to find you the best coverage.

What Is Variable Life Insurance?

The variable life insurance definition specifically indicates that this type of policy combines the same protection standard life insurance offers with the additional earning potential of investment funds. 

You can purchase this life insurance product through an independent insurer. You may also have the option to purchase group variable life insurance if your employer offers it.

With your variable life insurance, you’ll have two accounts. One is the general account, which acts as the reserve for the insurance provider. The other is the separate account. The separate account contains various types of investment funds, which can include the following:

  • Equity fund
  • Money market fund
  • Bond fund

As the account owner, you have the right to invest these bonds and other stocks in the market, but keep in mind that this causes your cash value investment to fluctuate. 

While investing in the stock market works to your advantage when the market is up, if the market goes down, your cash value and death benefits can also decrease.

What Is Variable Universal Life Insurance?

Variable universal life insurance is another option available to you. This type of life insurance policy combines the features of a variable life policy with those of a universal life policy. You can purchase flexible premium variable life insurance, which allows you to adjust your premiums. 

You can also tailor your death benefits and investment choices. Keep in mind that your variable adjustable life insurance policy is subject to Securities and Exchange Commission rules and can be reviewed by your state insurance commissioner.

As with any product, variable universal life insurance has pros and cons:

Pros: Cons:
You can take advantage of market fluctuations. Interest rates on cash value are flexible, but there are no minimum guarantees.
These policies are flexible and can adjust to your needs. If you don’t understand how the market works, you could lose money.
You also have greater responsibility, and the investment risk is placed upon you. If the market doesn’t work for you, you may need to pay premiums to make up your loss.

Variable life insurance includes fees and charges.

Do I Need a Variable Life Insurance Policy?

If you’re interested in purchasing a life insurance policy to provide financial protection for your family after your death, this type of policy may be more than you need. A term life insurance product can easily satisfy your needs. 

However, if you’re happy with the idea of using the market to help fund your life insurance product, a variable life insurance policy may work well for you. Just keep in mind that your cash value and benefits will fluctuate, and you’re responsible for making up any loss in cash value or benefits.

If life insurance is your only way to provide financial protection for your family, a variable life policy may not be the best product for you because it involves high risk. When it comes to your family, stability is important. 

The market is unpredictable, and while a minimum death benefit is guaranteed, it's not a good idea to invest cash that you can’t afford to lose. If you have a policy that performed poorly, you likely overpaid for your life insurance.

While it can take several years to accumulate a significant amount of investment value, the flexibility and potential growth of this life insurance policy can be appealing.


Save on Life Insurance

Our independent agents shop around to find you the best coverage.

Compare Variable Life Insurance Quotes

Whether you are ready to make a purchase or just want more information about variable life insurance, an independent agent in the Trusted Choice network can help. 

Member agents can compare policies and costs to ensure you’re getting a life insurance product that fits within your budget. 

Your agent can help you understand the pros and cons of this policy and help you compare it to other life insurance options to find the optimal policy for your needs. Contact an agent today to get your questions answered about variable life insurance policies.

Share this page on Twitter Share this page on Facebook Share this page on LinkedIn