A life insurance policy that lets the policyholder choose the underlying investments on which the policy’s return will be based. Policyholders can chose from stock, bond, or money market instruments.
variable life insurance
Variable life insurance is a type of life insurance policy where the policyholder chooses the investments which will be used to earn the return on the policy, such as stocks, bonds or money market accounts.
An example of variable life insurance is when the policyholder chooses money market investments as the investment source for their policy's return.