Variable Life Insurance Death Benefit: A Flexible and Potentially Rewarding Insurance Option
Variable life insurance death benefit is a unique feature of variable life insurance policies that provides policyholders the opportunity to accumulate cash value on a tax-deferred basis while also ensuring their beneficiaries receive a death benefit. The cash value can grow over time through market-linked investments such as stocks and bonds, offering the potential for higher returns. For example, a policyholder might purchase a variable life insurance policy with a death benefit of $500,000 and select an investment strategy that aligns with their risk tolerance. As the cash value grows, the death benefit can also increase, potentially providing a more substantial payout to the beneficiaries.