Variable whole life insurance can be described as quizlet

Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash-value account, which is invested in a number of sub-accounts available in the policy. A sub-account acts similar to a mutual fund, except it's only available within a variable life insurance policy.

Variable Life Insurance Advantages Premiums are not fixed, as with traditional whole life insurance or term insurance policies. Within limits, policyholders may adjust their premium payments based on their needs and investment goals. Loan interest may become taxable upon surrender of the policy.

Whole Life Insurance. Both variable life insurance and whole life insurance are forms of permanent coverage. Premiums are level and neither policy can be canceled due to changes in your health. Both types of life insurance also have a death benefit and accumulate cash value on a tax-deferred basis over time.

A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death.