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Variable life insurance

   Also found in: Acronyms 0.01 sec.
variable life insurance
Life insurance that relates benefits to the value of a separate investment account underlying the annuity. This insurance is designed to prevent erosion of benefits by inflation. The size of the benefits will vary.

Variable life insurance. Variable life insurance policies are cash-value policies that allow you to choose how your premium is invested from among a package of alternatives offered by the insurer.

In many variable life policies, the face value of your policy depends on how well the investments you've chosen are performing.



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