variable life
Life insurance policy in
which the assets backing a policyholder’s cash value grow in a separate
account rather than in the insurance company’s general account. The
separate accounts assets are invested in stocks, bonds, money market
funds, or other such instruments. Death benefits on traditional variable
life policies fluctuate with the investment performance of the separate
accounts, but will never fall below the policy’s initial face amount.
Cash values are not guaranteed.
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