What does variable life insurance allow policyholders to do?

Variable life insurance is a type of permanent life insurance that provides policyholders with the opportunity to invest their cash value in a variety of investment options, often including stocks, bonds, and mutual funds. This flexibility allows the cash value of the policy to potentially grow over time, reflecting the performance of the chosen investments.

Unlike traditional life insurance policies that typically have a fixed cash value, variable life insurance enables policyholders to take a more active role in the growth of their policy's cash value, aligning it with their risk appetite and investment goals.

While options regarding withdrawals or conversions might seem appealing, they do not accurately describe the primary function of variable life insurance. Withdrawals can often come with penalties, and the policy cannot typically be converted into a health insurance policy. The emphasis on the investment aspect distinctively characterizes variable life insurance.