Variable life insurance

Definition

A form of whole life insurance that accumulates cash value on a tax-deferred basis. Variable life insurance operates similarly to a mutual fund because the insured pays premiums that go into a separate investment account owned by the insured. The variable life insurance policy yields a death benefit to the insured: while there is a minimum guaranteed death benefit, part of the death benefit is variable and depends on the performance of the insured’s investment accounts. Variable life policies are securities and are subject to federal securities laws as well as state insurance regulation.

Illustrative caselaw

See, e.g. Lincoln National Life Insurance Co. v. Bezich, 610 F.3d 448 (7th Cir. 2010).

See also