What are insurers required to disclose regarding Variable Life Insurance policies?

Insurers are required to disclose comprehensive information regarding fees, risks, and investment performance associated with Variable Life Insurance policies. This requirement is crucial because Variable Life Insurance combines life insurance protection with investment components, and the policyholder's premiums are allocated to various investment options.

Understanding fees is essential for policyholders, as these can significantly impact the overall investment performance of the policy. Risks must also be disclosed explicitly, as investments in variable products are subject to market fluctuations, meaning the cash value and death benefit can vary based on the performance of those investments.

Additionally, information about investment performance allows policyholders to assess how well their chosen investments are doing, which is vital for making informed decisions about their financial future. This comprehensive disclosure aligns with regulatory requirements intended to protect consumers by ensuring they have all necessary information to make educated choices about their insurance and investment needs.