Variable life insurance,
Definition of Variable life insurance:
Fixed premium insurance policy that, in addition to a guaranteed minimum death benefit, provides a return based on the income performance of an investment portfolio.
Variable life insurance is a permanent life insurance product with separate accounts comprised of various instruments and investment funds, such as stocks, bonds, equity funds, money market funds, and bond funds.
In some ways, variable life insurance can be described as a form of securities. Why? Because of investment risks, variable policies are considered securities contracts. They are regulated under the federal securities laws. Following the federal regulations, sales professionals must provide a prospectus of available investment products to potential buyers. .
How to use Variable life insurance in a sentence?
- Variable life insurance is a permanent life insurance product.
- Variable life insurance is often more expensive than other life insurance products, like term life. .
- This product contains separate accounts comprised of various instruments and investment funds.
- Variable policies are considered securities contracts because of investment risks.
Meaning of Variable life insurance & Variable life insurance Definition