What Is Variable Life Insurance And How Does It Work? 
Variable universal life insurance is a security . Those who sell it must be registered representatives of a broker dealer . Variable universal life insurance uses a guaranteed account or the separate sub accounts that offer market access to equities and bond investment instruments . Because of this market access , the cash value account could lose money , so a risk tolerance profile needs to be established to determine product suitability for the investor . When variable universal life premiums are paid , the policy expense loads are generally deducted and the earnings or losses are credited or debited from the premium and/or cash value accumulation account . 