How Does A Variable Life Insurance Work? 
Variable life insurance is an investment in a mutual fund inside life insurance . I sold a lot of it early in my career as what was called a private pension plan . Unfortunately , so many consumers became confused over exactly how to manage this product , the government cracked down and stopped us from using these terms . The thing is , variable life is not really a pension . Its life insurance . Its job is to provide a survivor benefit at the lowest cost possible . Along the way , its nice to grow some cash on a tax-favored basis . If you can grow that cash inside a mutual fund , as opposed to inside the general account of a life insurance company , you might be able to grow a lot of it . But you always have to worry about paying the expenses related to the product . There are mortality costs , admin fees , taxes , and so on . If you dont manage the investment accounts scrupulously , you might end up jeopardizing the survivor benefit . You may end up with a lower benefit than needed . The policy may not sustain a benefit for as long as you want . These are things you need to know as you research the world of life insurance products . 