What is an advantage of keeping a Variable Life Insurance policy in force during market declines?

Keeping a Variable Life Insurance policy in force during market declines allows the policyholder to benefit from the death benefit guarantees. Even when the market experiences downturns, the death benefit remains intact and is not affected by the fluctuations in investment performance. This means that the beneficiaries will receive the agreed-upon amount upon the policyholder's death, providing financial security regardless of current market conditions.

Understanding the nature of the investments within a Variable Life Insurance policy is crucial. The policy often includes a range of investment options, and while these may lose value during market declines, the death benefit guarantees ensure that the overall life insurance protection continues to hold value for the beneficiaries. This feature can be especially comforting for policyholders, knowing their loved ones will be financially supported despite the challenges presented by a declining market.