With variable life insurance, you have the potential for a lot of growth. You can invest in a variety of mutual funds with your policy and let the money you put into it compound over time. A big attraction to this form of life insurance is that investors can sometimes borrow from their cash value account without paying a penalty.
In addition to making investments, you also have the option to purchase additional insurance within your policy.
Variable life insurance policies are not a type of investment account. The value of a variable life insurance policy directly reflects the securities in which it is invested. The cash value of a variable life insurance policy is determined by its underlying investments and any loans made against those investments, as well as premiums paid.
Variable life insurance policies also often include a guaranteed minimum death benefit that will be paid to your beneficiaries if you die during the life of the policy.