What is the primary benefit of a Variable Life Insurance policy?

The primary benefit of a Variable Life Insurance policy lies in the potential for cash value growth linked to investment performance. This type of policy allows policyholders to allocate their premium payments among a variety of investment options, including stocks, bonds, and mutual funds. As these investments perform well, the cash value of the policy can appreciate, exceeding the growth rate of guaranteed products like whole life insurance.

This feature not only provides the opportunity for increased returns but also aligns the policy’s growth with the policyholder’s risk tolerance and investment choices. The variable nature of this growth means that while there is a chance for substantial appreciation, there is also the risk of losses, differentiating it from more conservative life insurance products. This flexibility and connection to market performance make it particularly appealing to individuals looking for potential growth in their life insurance policy's cash value.