A type of permanent life insurance that offers flexible premiums and an adjustable death benefit. The cash value earns interest at a rate set by the insurer. You can increase or decrease your premium payments and death benefit within certain limits.
Related Terms
Permanent Life Insurance
Life insurance that provides coverage for your entire lifetime as long as premiums are paid, unlike term life which expires after a set period. Permanent policies include a cash value component and come in several forms: whole life, universal life, and variable life.
Variable Life Insurance
A type of permanent life insurance where the cash value is invested in sub-accounts similar to mutual funds. The cash value and death benefit can fluctuate based on investment performance. Variable life offers higher growth potential but also carries investment risk.
Whole Life Insurance
The most traditional form of permanent life insurance, offering a guaranteed death benefit, fixed premiums, and guaranteed cash value growth. Whole life policies may also pay dividends. Premiums are higher than term life but remain level for your entire life.