Variable life insurance is a permanent insurance which continues as long as you pay the premium amount and provides life insurance coverage. It has three main components:
- Premium: Premium which the insurance holder pay for the policy under which a part of the payment goes to life insurance coverage, part as brokerage and the remaining gets invested in the cash value.
- Death benefit: Death benefit is the life insurance coverage which the beneficiary receives on the death of the policy holder.
- Cash value: It is an account linked with the life insurance policy.