What should policyholders prioritize when considering the cash value in Variable Life Insurance?

When considering the cash value in Variable Life Insurance, policyholders should prioritize understanding investment performance and fees associated with their policy. This is because the cash value component of a variable life policy is tied to various investment options that can change in value based on market performance.

By grasping how the investments work, the potential returns, and the associated costs, policyholders can make informed decisions that align with their financial goals and risk tolerance. Knowing the fees is crucial, as they can eat into the cash value and overall returns. Moreover, fluctuations in the market can impact the performance of the investment component, making it essential for policyholders to be aware of this dynamic.

Therefore, understanding investment performance and fees is fundamental for managing the cash value effectively and ensuring that the policyholder's financial objectives are met over time.