Why is cash value important in Variable Life Insurance?

The significance of cash value in Variable Life Insurance primarily lies in its versatility for the policyholder. Cash value accumulates over time and can serve multiple financial needs during the life of the insured, such as providing funds for emergencies, supplementing retirement income, or financing significant purchases. This feature allows policyholders to access the cash value through loans or withdrawals, which makes the policy more flexible and beneficial as a financial tool.

While the cash value does play roles related to guarantees, premium calculations, and tax implications, its immediate utility in addressing various financial needs directly highlights its importance in the context of Variable Life Insurance.