What is a ledger in the context of Variable Life Insurance?

In the context of Variable Life Insurance, a ledger serves as a summary document that provides vital information about the policy. It outlines the policy's cash value, which represents the accumulated savings component that can grow over time and is subject to investment performance. Additionally, it details the premiums paid by the policyholder, allowing them to see how much they have contributed to the policy.

The ledger also indicates fees deducted from the account, which can include administrative charges, cost of insurance, and investment management fees. Finally, it provides information about the death benefit, ensuring that the policyholder understands the financial protection their beneficiaries will receive in the event of their passing.

This summary is essential for policyholders, as it allows them to track the performance and status of their variable life insurance policy effectively. It helps them make informed decisions about adjustments or allocations within their policy based on its performance and their personal financial goals. Understanding the ledger is crucial for maximizing the benefits of a variable life insurance policy.