What is the primary goal of variable life policies?

The primary goal of variable life policies is to provide flexible investment opportunities combined with life insurance protection. These policies allow policyholders to allocate their premiums among various investment options, such as stocks and bonds, which can lead to varying returns based on the performance of those investments.

The flexibility aspect is crucial; policyholders can adjust the amount of their premium payments and decide how to allocate their funds among different investment options, depending on their financial goals and risk tolerance. This structure enables them to potentially grow their cash value over time, distinguishing variable life insurance from more traditional life insurance policies that offer fixed returns.

Additionally, while variable life insurance does provide a death benefit, which is a fundamental purpose of any life insurance, its unique selling proposition lies in the ability to connect life insurance coverage with investment growth, making it attractive to those looking to manage risk and seek opportunities for higher returns.