In fact, when variable universal life policies first became available in 1986, contract owners were able to make very high investments into their policies and received extraordinary tax benefits.
What is variable life insurance in United States?
What Is Variable Life Insurance? A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death.
Why is it called variable life insurance?
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.