How Does Group Variable Life Insurance Work? 
Group Variable Life Insurance -LRB- or GVUL -RRB- is a combination of term insurance with a cash component that allows you to allocate your money into `` separate '' investment accounts . Depending on the carriers , those choices allow for mutual funds , etf 's and bond funds , as well as a Guaranteed Principal Account -LRB- GPA -RRB- . Many times the coverage is Corporate Sponsored which means that the employer pays the term cost and you the employee has the option to contribute through payroll deduction or bank draft . GVUL is a what Suzy Orman would call , buy term and invest the difference , except that the difference is placed in a product that you do n't pay taxes on while it grows -LRB- because it is inside the life insurance -RRB- and when you take it out -LRB- if done properly -RRB- can be taken out tax free . 