variable life insurance


Also found in: Acronyms.

Variable Life Insurance

A whole life insurance policy in which some, or all, of the premium is allocated to a separate account, which is invested in common stock. If the common stock portfolio does well, the death benefit increases accordingly; if it performs poorly it decreases, though all variable life insurance policies have a benefit floor. A significant advantage to a variable life insurance policy is the fact that the policyholder does not have to pay taxes on earnings from the portfolio until it is cashed in, usually through death. In the United States, variable life insurance policies are considered securities contracts and, as such, they are regulated by federal law.

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.

References in periodicals archive ?
A suitable purchaser of a variable life insurance or annuity product must be someone who understands its risks, fees, limitations and guarantees as described in the product and underlying fund prospectuses.
The proposal "would require communications that present variable life insurance policy performance to urge investors to obtain a personalized hypothetical illustration," FINRA officials write in the variable products regulatory notice.
Products: Historically, Merrill Lynch had focused on manufacturing and selling interest-sensitive and variable life insurance and annuities; however, its primary emphasis will be the sale of variable annuities.
This easy-to-use guide explains lifecycle portfolios and gives side-by-side comparisons of the 11 lifecycle portfolios available through their variable life insurance policies.
Coupled with the inherent tax advantages associated with both traditional and variable life insurance, CPAs can use these new retirement planning opportunities to maximum advantage in advising clients.
The addition of Nationwide Provident also gives Nationwide Financial a stronger position in the variable life insurance segment, which is a key growth area for the company, Haviland said.
For some clients, the hardest decision with a variable life insurance policy is picking which investment options to be in.
Upon close of the transaction, Nationwide would become the nation's third-largest provider of variable life insurance, the companies said.
Best has also affirmed the FSR of A (Excellent) and the ICR of "a" of Ameritas Variable Life Insurance Company (AVLIC) (Lincoln, NE), a wholly owned subsidiary of Ameritas Life.
New York, has introduced a rider to its whole life insurance product line that adds variable life insurance to a base whole life policy.
These policies, which include whole life, universal life" and variable life insurance, cost thousands of dollars a year compared to term insurance, which costs hundreds.

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