Variable Life Insurance
A type of permanent life insurance where the cash value is invested in a selection of investment accounts (like stocks and bonds) chosen by the policyholder. The death benefit may also fluctuate based on the performance of these investments.
Detailed Explanation
Variable life insurance is like the roller coaster of policies—thrilling with the potential for higher returns, but not without its twists, turns, and added risks. Buckle up and enjoy the ride!
Practical Example
Robert has a variable life insurance policy. He allocates his cash value among different investment options, hoping for higher growth potential, but he also understands that the cash value and potentially the death benefit could decrease if the investments perform poorly.
Frequently Asked Questions
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