How Does Variable Life Insurance Work? 
A variable life policy is a form of universal life . Out of each premium payment a stated amount is withdrawn to pay the insurance cost for a period of time . The balance goes into a fund other than the companys general fund . In the case of the universal life policy it goes into a special fund . In the case of the variable life policy it goes into a fund where the owner of the policy can select how the money will be invested . 