What factor is crucial for consumers when assessing the performance history of Variable Life Insurance?

When consumers assess the performance history of Variable Life Insurance, the past returns on investment options play a crucial role. This type of life insurance includes investment components that fluctuate based on the performance of selected investment options. Consequently, individuals looking to invest in Variable Life Insurance are particularly concerned about the historical performance data of these investments, as it directly impacts the potential cash value and death benefits tied to the policy.

Understanding past returns helps consumers gauge the potential future performance and the level of risk involved. These investment returns can significantly influence the overall value of the policy over time, making it essential for consumers to examine this factor closely when making informed decisions regarding their insurance products.