What does variable life insurance allow the policyholder to do?

Variable life insurance is designed to provide policyholders with the flexibility to choose how their cash value accumulates, allowing them to select from a range of investment options, which often include equity-based investments. This means that the policyholder can allocate their cash value into different funds, such as stocks or bonds, depending on their individual investment strategy and risk tolerance. This personalization reflects the nature of variable life insurance, where the cash value can fluctuate based on the performance of the chosen investments, potentially leading to greater growth than a fixed investment would provide.

While other options touch on aspects of life insurance, they do not accurately capture the unique feature of variable life insurance that emphasizes policyholder choice in investment strategies for cash accumulation. The ability to adjust the investment strategy can significantly influence both the cash value and the overall benefits received from the policy, making it an attractive option for those who want to be more proactive in managing their insurance product.