Yes, variable life insurance has fixed premiums. The amount you pay and when you pay it are set by the insurance company at the start of your policy. This structure differs from variable universal life insurance (VUL), which allows flexible premium payments. Under federal securities law and state insurance regulations—specifically the NAIC Variable Life Insurance Model Regulation—a “scheduled premium policy” is defined as one where “both the amount and timing of premium payments are fixed by the insurer.”
The global variable life insurance market was valued at $67.5 billion in 2024 and is projected to reach $149.7 billion by 2034, growing at 8.1% annually. This growth reflects rising demand for investment-linked insurance products that combine permanent death benefit protection with market participation. Fixed premiums provide the budget stability many buyers need, while the investment component offers wealth-building potential.
Here’s what you’ll learn in this article:
- 📊 How fixed premiums work in variable life insurance and why the SEC classifies these policies as securities
- ⚖️ The key differences between variable life insurance (fixed premiums) and variable universal life insurance (flexible premiums)
- 💰 Real-world scenarios showing how premium payments, cash value, and death benefits interact
- ⚠️ Common mistakes buyers make with variable life insurance premiums and how to avoid them
- ✅ Do’s and don’ts for managing your policy to prevent lapse and maximize value
Why Variable Life Insurance Premiums Stay Fixed While Everything Else Changes
Variable life insurance earns its name from the variable nature of its cash value and death benefit—not its premiums. Your cash value gets invested in sub-accounts that function like mutual funds. When these investments perform well, your cash value and death benefit can grow. When they perform poorly, both can shrink.
The fixed premium structure exists because the insurer bears the mortality and expense risks under state insurance law. The NAIC Model Regulation requires that “mortality and expense risks shall be borne by the insurer” and that “the mortality and expense charges shall be subject to the maximums stated in the contract.” This means your insurance company—not you—absorbs the risk that people might die sooner than expected or that administrative costs might rise.
Fixed premiums also provide regulatory simplicity. Because variable life insurance qualifies as a security under federal law, the SEC requires registration of these contracts. FINRA regulates the investment professionals who sell them. Fixed premiums make it easier to disclose costs in prospectuses and help buyers compare policies.
The Securities Classification: Why Your Life Insurance Agent Needs a FINRA License
Variable life insurance occupies a unique regulatory space. FINRA confirms that “variable life and variable universal life insurance…are considered securities and must be registered with the SEC.” This dual regulation under both state insurance commissioners and federal securities laws creates specific requirements for how these products are sold and managed.
Anyone selling variable life insurance must pass the Series 6 exam (Investment Company and Variable Contracts Products) and the Securities Industry Essentials (SIE) exam. They must also be sponsored by a FINRA member firm. This is in addition to state life insurance licensing requirements.
The SEC classification stems from how these policies work. Your premium payments fund a separate account that invests in securities. Unlike whole life insurance—where the insurance company invests your cash value in its general account and guarantees specific returns—variable life puts you in control of investment choices and you bear the investment risk. This investment risk is why the SEC requires prospectus delivery before purchase.
Breaking Down the Fixed Premium Structure: Where Your Money Goes
When you pay your fixed premium on a variable life insurance policy, the money gets divided into several components. Understanding this breakdown helps you see why premiums stay level even when investment performance fluctuates.
| Premium Component | Purpose |
|---|---|
| Cost of Insurance (COI) | Pays for the death benefit protection based on your age, health, and coverage amount |
| Administrative Fees | Covers policy management, statements, and regulatory compliance costs |
| Mortality and Expense (M&E) Charge | Compensates the insurer for guaranteeing minimum death benefits regardless of market performance |
| Cash Value Contribution | The remainder goes into your separate account for investment |
The fixed premium ensures consistent funding across all components. Even if your investments lose money, you still pay the same amount. This differs dramatically from variable universal life insurance, where poor investment performance might require you to increase payments to keep the policy in force.
How Fixed Premiums Interact With Your Cash Value and Death Benefit
Your fixed premium creates predictable cash flow for the insurance company, but what happens inside your policy varies based on market performance. Western & Southern Financial Group explains that variable life insurance offers a “fixed death benefit and a cash value account that can be invested in multiple subaccounts.”
The “fixed death benefit” here refers to the minimum guaranteed death benefit. Variable life insurance policies must provide a minimum death benefit at least equal to the initial face amount as long as you pay your scheduled premiums. This requirement comes directly from state insurance regulations based on the NAIC model.
When your sub-account investments outperform the assumed investment rate built into your policy, your variable death benefit rises above the minimum. When investments underperform, the variable death benefit falls—but never below your guaranteed minimum (assuming premium payments continue). Your fixed premium keeps this guarantee intact.
Variable Life Insurance vs. Variable Universal Life Insurance: The Premium Flexibility Question
The most common source of confusion about variable life insurance premiums comes from mixing up two distinct products. Investopedia clarifies that “the key difference is flexibility” and “with variable life, you pay a fixed premium that does not change each year.”
| Feature | Variable Life Insurance | Variable Universal Life Insurance |
|---|---|---|
| Premium Structure | Fixed – amount and timing set by insurer | Flexible – pay more, less, or skip (within limits) |
| Death Benefit | Guaranteed minimum; can increase with performance | Adjustable; can increase or decrease |
| Investment Component | Sub-accounts (stocks, bonds, mutual funds) | Sub-accounts (stocks, bonds, mutual funds) |
| Policy Lapse Risk | Lower (fixed premiums maintain coverage) | Higher (insufficient payments can lapse policy) |
| SEC Registration | Required | Required |
Guardian Life notes that VUL’s “adjustable premiums” mean “a policyowner may adjust the amount they pay each year—or even month to month.” But this flexibility comes with risk: “paying minimum or insufficient premiums for a prolonged period could lead to higher premiums in later years to maintain coverage.”
Three Common Scenarios: Fixed Premiums in Real-World Situations
Understanding how fixed premiums work in practice helps you plan for different market conditions and life circumstances.
Scenario 1: Sarah’s Strong Market Performance
Sarah, age 35, purchases a $500,000 variable life insurance policy with a $400 monthly fixed premium. She invests her cash value in equity-focused sub-accounts. Over 15 years, her investments average 8% annual returns.
| Outcome | Result |
|---|---|
| Premium Payments | Remain $400/month for all 15 years |
| Cash Value Growth | Exceeds initial projections; builds substantial equity |
| Death Benefit | Variable death benefit rises above $500,000 minimum |
| Policy Status | Remains fully in force; no additional payments required |
Sarah’s fixed premiums provide stability. She never worries about premium increases despite her aggressive investment strategy.
Scenario 2: Michael’s Market Downturn Experience
Michael, age 45, has held his $300,000 variable life policy for 10 years with $350 monthly fixed premiums. A severe market correction causes his sub-account investments to lose 35% of their value.
| Outcome | Result |
|---|---|
| Premium Payments | Still $350/month—no increase despite losses |
| Cash Value | Drops significantly; may take years to recover |
| Death Benefit | Falls toward guaranteed minimum of $300,000 |
| Policy Status | Stays in force because premiums are fixed and paid |
Michael’s protection continues regardless of investment losses. If he had variable universal life insurance, he might need to increase payments or risk policy lapse.
Scenario 3: Patricia’s Long-Term Hold Strategy
Patricia, age 30, purchases a $250,000 variable life policy with $200 monthly fixed premiums. She plans to hold the policy for 40 years until retirement.
| Outcome | Result |
|---|---|
| Premium Payments | Locked at $200/month for entire 40-year period |
| Total Premiums Paid | $96,000 over 40 years |
| Cash Value Potential | Subject to market performance—could exceed premiums paid |
| Death Benefit | Guaranteed minimum of $250,000; potentially higher |
Patricia’s fixed premium protects her from cost increases as she ages. Buying term insurance at age 65-70 would cost significantly more than her locked-in rate.
The Minimum Death Benefit Guarantee: Why Fixed Premiums Matter
The NAIC Model Regulation requires that “for scheduled premium policies, a minimum death benefit shall be provided in an amount at least equal to the initial face amount of the policy so long as premiums are duly paid.” This guarantee creates a floor beneath your death benefit that cannot be breached as long as you pay fixed premiums.
Insurance companies fund this guarantee through reserve liabilities held in their general account. The regulation specifies that reserves for the guaranteed minimum death benefit must cover the “contingency of death occurring when the guaranteed minimum death benefit exceeds the death benefit that would be paid in the absence of the guarantee.” Your fixed premium payments fund both your separate account investments and contribute to these reserve requirements.
This structure protects your beneficiaries. Even if your investments drop to zero value, your loved ones receive at least the minimum guaranteed death benefit upon your death. The fixed premium is the mechanism that keeps this guarantee intact.
Sub-Accounts and Investment Options: What Your Premium Actually Buys
The portion of your fixed premium that reaches your separate account gets invested according to your choices. The Insurance Information Institute describes variable life as a policy that “combines death protection with a savings account that you can invest in stocks, bonds and money market mutual funds.”
Common sub-account options include:
- Equity funds – Invest in stocks for growth potential with higher volatility
- Bond funds – Focus on fixed-income securities for more stable but typically lower returns
- Money market funds – Provide capital preservation with minimal returns
- Balanced funds – Mix stocks and bonds for moderate risk and return
- Index funds – Track market indices like the S&P 500
Some policies also offer a fixed account option that earns interest at a rate set by the insurance company. This option provides “returns that are usually lower than stock or bond focused options but are more predictable and not affected by market swings.”
Policy Lapse Risk: How Fixed Premiums Protect Your Coverage
Policy lapse—termination of your insurance contract without value—represents one of the most significant risks in life insurance ownership. A lapsed policy leaves your beneficiaries without the death benefit you intended to provide. Fixed premiums substantially reduce this risk.
The University of Illinois notes that “the risk of policy lapses is real but can be reduced by maintaining sufficient cash value through positive investment performance and additional premium payments.” With variable life insurance’s fixed premium structure, you don’t face the choice of whether to make additional payments during market downturns—you simply pay your scheduled premium.
Variable universal life insurance creates different dynamics. MassMutual explains that VUL “allows for greater premium flexibility” where “a policyowner may adjust the amount they pay each year.” But if cash value drops and the policyholder doesn’t increase payments, the policy can lapse. Paradigm Life warns that “if you rely on cash value to fund a portion or all of your premiums in a variable life policy, your cash value may become insufficient.”
Mistakes to Avoid With Variable Life Insurance Premiums
Even with fixed premiums, buyers make costly errors that undermine their coverage. Security Mutual Life identifies several critical mistakes.
Mistake 1: Not Paying Attention to Guarantees
Traditional whole life insurance has guaranteed cash values and death benefits. Variable life insurance guarantees a minimum death benefit but not specific cash values. Some buyers confuse the guarantee types and expect cash value growth that isn’t promised. Consequence: Disappointment when investments underperform and cash value declines despite paying all premiums.
Mistake 2: Owning the Policy Yourself
If you own your variable life policy when you die, the death benefit becomes part of your estate. While federal estate taxes generally apply only to estates exceeding $12+ million, 11 states plus Washington D.C. have their own separate estate or inheritance taxes with lower thresholds. Consequence: Unnecessary estate taxes reduce the amount your beneficiaries receive.
Mistake 3: Buying Without Understanding the Investment Component
Variable life insurance requires active engagement with investment choices. Ameritas notes that “failing to review your policy regularly can leave you underinsured.” Consequence: Misaligned investments that don’t match your risk tolerance or time horizon.
Mistake 4: Focusing Only on Premium Cost
Compass Coverage observes that “while it might be tempting to choose the policy with the lowest monthly premium, this could be a costly mistake.” Lower premiums often mean less coverage, fewer investment options, or inferior guarantees. Consequence: Inadequate protection for your family’s needs.
Mistake 5: Delaying Purchase
Premium rates for life insurance increase with age. Waiting to buy means higher costs when you do purchase, and potential health issues could make coverage unavailable or extremely expensive. Consequence: Paying more for the same coverage—or being denied coverage entirely.
Do’s and Don’ts for Variable Life Insurance Premium Management
Managing your variable life insurance effectively requires understanding what actions support your policy and which actions harm it.
Do’s:
- Do pay premiums on time. Late payments trigger grace periods (typically 31 days) but risk policy complications. Consistent on-time payments maintain your minimum death benefit guarantee and keep your policy in good standing.
- Do review your investment allocations annually. Your risk tolerance and time horizon change over time. Rebalancing your sub-account investments ensures alignment with your current financial situation.
- Do keep beneficiary designations current. Life changes—marriage, divorce, births, deaths—affect who should receive your death benefit. Outdated beneficiaries can create legal complications and delays.
- Do understand your policy’s fee structure. Variable life insurance carries higher fees than many alternatives. Knowing exactly what you pay helps you evaluate whether the policy delivers appropriate value.
- Do consider the policy loan option carefully. You can borrow against your cash value, but any loans must be repaid with interest. Unpaid loans reduce your death benefit.
Don’ts:
- Don’t skip the prospectus review. The prospectus discloses all fees, investment options, and risks. Ignoring this document means making uninformed decisions about a complex financial product.
- Don’t expect guaranteed cash value growth. Unlike whole life insurance, variable life insurance cash values can decrease due to market performance. Plan for volatility.
- Don’t surrender the policy without considering alternatives. Surrendering your policy may trigger taxes on gains and eliminates your death benefit protection. If you need cash, policy loans may be preferable.
- Don’t assume your agent understands securities. Verify that your life insurance agent holds proper FINRA registration to sell variable products. Unlicensed sales violate federal law and may indicate broader problems.
- Don’t purchase if you need short-term savings. Variable life insurance is not designed for short-term financial goals. High early fees and surrender charges make short-term ownership expensive.
Pros and Cons of Variable Life Insurance With Fixed Premiums
Before committing to variable life insurance, weigh the advantages against the drawbacks.
| Pros | Cons |
|---|---|
| Fixed premiums provide budget predictability – You know exactly what you’ll pay each month, year after year | Higher costs than term insurance – Permanent coverage with investment components costs significantly more than simple term policies |
| Minimum death benefit guaranteed – As long as you pay premiums, your beneficiaries receive at least the face amount | Investment risk borne by policyholder – Poor market performance reduces cash value and potentially the death benefit above the minimum |
| Tax-deferred cash value growth – Investments grow without annual taxation until withdrawal | Complex tax treatment – Withdrawals, loans, and surrenders create complicated tax consequences |
| Investment control and flexibility – Choose from multiple sub-accounts to match your risk tolerance | Higher fees than comparable investments – Mortality, expense, and administrative charges reduce returns compared to direct investing |
| Lifetime coverage – Policy never expires as long as premiums are paid | Securities registration required – More complex purchase process requiring prospectus review |
| Policy loans available – Borrow against cash value without credit checks | Loans reduce death benefit – Outstanding loans and interest decrease what beneficiaries receive |
| Locked-in rates – Fixed premiums protect against health changes making insurance more expensive later | Not suitable for short-term needs – Surrender charges and high early fees penalize early exit |
State Insurance Regulation: How Your Commissioner Oversees Variable Life Insurance
While the SEC and FINRA regulate the securities aspects of variable life insurance, state insurance commissioners oversee the insurance components. This dual regulatory structure affects how policies are approved, sold, and managed.
State insurance departments control and supervise “all insurance business in the state.” Their responsibilities include:
- Licensing insurance agents
- Issuing certificates of authority to insurance companies
- Reviewing and approving policy forms
- Investigating complaints
- Examining insurance company financial stability
- Setting requirements for premium rates
Each state can adopt its own version of the NAIC Variable Life Insurance Model Regulation. This means specific requirements may vary by state, though core protections like the minimum death benefit guarantee and fixed premium definition remain consistent.
For example, Arizona law requires that “for scheduled premium policies, the insurer shall provide a minimum death benefit in an amount that equals or exceeds the initial face amount of the policy as long as the insured pays the premiums.” Maryland requires a 10-day free look period, a 31-day grace period for premium payments, and a 2-year incontestability clause.
The Free Look Period: Your Right to Return the Policy
Every variable life insurance policy must include a free look period—typically 10 days from receipt—during which you can return the policy for a full refund. The NAIC Model Regulation specifies that policyholders may “return the variable life insurance policy within ten (10) days of receipt” and receive back their premiums minus any amounts already allocated to separate accounts, plus the current value of those allocated amounts.
This provision protects buyers who discover that variable life insurance doesn’t fit their needs after reviewing the full policy documents. Because the prospectus and policy details may not be fully clear until after purchase, the free look period provides an escape valve.
During the free look period, your fixed premium payment is refundable. Use this time to:
- Read the complete prospectus
- Review all fees and charges
- Understand your investment options
- Verify the minimum death benefit guarantee
- Confirm the premium payment schedule
Grace Periods and Reinstatement: What Happens If You Miss a Payment
The NAIC Model Regulation mandates a grace period of not less than thirty-one (31) days from the premium due date. During this grace period, “policy values will be the same, except for the deduction of any overdue premium, as if the premium were paid on or before the due date.”
If you miss your fixed premium payment:
- Day 1-31: Grace period. Your coverage continues unchanged if you pay within this window.
- After Day 31: Policy may lapse. The consequences depend on your cash value.
If your policy lapses, you generally have two years to reinstate it by submitting a written application, providing evidence of insurability, and paying overdue premiums with interest. The regulation allows insurers to charge either “all overdue premiums with interest” or “110 percent of the increase in cash value resulting from reinstatement.”
This reinstatement right provides a safety net. Even if you fall behind on fixed premium payments, you have a path back to coverage—though at additional cost.
How Fixed Premiums Compare Across Different Life Insurance Types
Understanding where variable life insurance fits in the broader life insurance landscape helps you evaluate whether fixed premiums with an investment component meet your needs.
| Policy Type | Premium Structure | Cash Value | Investment Control | Death Benefit |
|---|---|---|---|---|
| Term Life | Fixed for term period | None | None | Level (typically) |
| Whole Life | Fixed for life | Guaranteed growth | None (insurer manages) | Fixed and guaranteed |
| Variable Life | Fixed for life | Varies with market | Policyholder chooses | Guaranteed minimum |
| Universal Life | Flexible | Grows at declared rate | None | Adjustable |
| Variable Universal Life | Flexible | Varies with market | Policyholder chooses | Adjustable |
| Indexed Universal Life | Flexible | Tied to index performance | Limited (index options) | Adjustable |
Titan Wealth International notes that “the key difference lies in flexibility: with VUL, policyholders can adjust both premium levels and death-benefit amounts, whereas variable life typically requires fixed premiums.” Some variable life contracts include a “minimum guaranteed death benefit, which remains level regardless of investment performance—provided required premiums are paid.”
Suitability Standards: Is Variable Life Insurance Right for You?
The NAIC Model Regulation requires insurers to establish suitability standards specifying that “no recommendation shall be made to an applicant to purchase a variable life insurance policy…in the absence of reasonable grounds to believe that the purchase of the policy is not unsuitable for the applicant.”
This means your agent must evaluate your:
- Insurance needs and objectives
- Investment objectives
- Financial situation
- Risk tolerance
FINRA reinforces that members “should consider whether the customer desires and needs life insurance and whether the customer can afford the premiums likely needed to keep the policy in force.”
Variable life insurance with fixed premiums may be suitable if you:
- Need permanent life insurance protection
- Can afford and commit to fixed premium payments for life
- Want investment control over your cash value
- Understand and accept market risk
- Have maximized other tax-advantaged accounts (401(k), IRA)
- Have a long time horizon (10+ years minimum)
Variable life insurance may be unsuitable if you:
- Only need temporary coverage
- Cannot commit to fixed premium payments
- Are uncomfortable with market volatility
- Need access to cash within the next several years
- Have not maximized simpler retirement accounts
The Role of Sub-Account Selection in Your Fixed Premium Policy
Your fixed premium amount doesn’t change based on which sub-accounts you choose—but your long-term outcomes certainly do. Prudential Financial notes that variable life insurance “allows you to build a cash value and invest it” with “the potential for tax deferred growth.”
Conservative sub-account choices (bond funds, money market funds) typically produce lower but more stable returns. Aggressive choices (equity funds, sector funds) can generate higher returns but with greater volatility. Your risk tolerance should guide these decisions—not your fixed premium amount.
The SEC-regulated sub-accounts within variable life policies operate similarly to mutual funds but can only be sold to separate accounts and qualified retirement plans. This restriction exists under federal tax law to maintain the policy’s tax advantages.
Fees Inside Variable Life Insurance: What Your Fixed Premium Pays For
Variable life insurance typically carries higher fees than comparable investments held outside an insurance wrapper. Understanding these fees helps you evaluate whether the policy’s benefits justify the costs.
Cost of Insurance (COI): This charge pays for your actual death benefit protection. It increases as you age because mortality risk rises. However, with fixed premiums, this increasing COI is already factored into your level payment schedule.
Mortality and Expense (M&E) Risk Charge: This substantial fee compensates the insurer for guaranteeing your minimum death benefit regardless of investment performance. The M&E charge typically exceeds 1% annually and remains constant regardless of your specific mortality risk.
Administrative Fees: These cover policy maintenance, statements, regulatory compliance, and customer service. They may be stated as flat annual fees or as a percentage of account value.
Sub-Account Management Fees: Each sub-account charges investment management fees similar to mutual fund expense ratios. These fees reduce your investment returns before they’re credited to your cash value.
Surrender Charges: If you terminate your policy within the first several years, you’ll pay surrender charges that can persist for a decade. These charges protect the insurer from losing money on early terminations after paying sales commissions.
Reports to Policyholders: Monitoring Your Fixed Premium Policy
The NAIC Model Regulation requires insurers to provide regular reports showing your policy’s status. These reports must include:
- Current cash value
- Current death benefit
- Sub-account performance
- Fees and charges deducted
- Policy loan balance (if applicable)
Reviewing these reports helps you understand how your fixed premium policy is performing. Even though your premiums stay constant, your cash value and death benefit (above the minimum) fluctuate with market conditions.
Watch for reports showing that your variable death benefit has dropped toward your guaranteed minimum. While this doesn’t require any action on your part—your fixed premiums maintain the guarantee—it signals that investment conditions have been challenging.
Tax Treatment of Variable Life Insurance Premiums and Benefits
Variable life insurance offers several potential tax advantages, though the rules are complex.
Premium Payments: Your fixed premiums are not tax-deductible. You pay them with after-tax dollars.
Cash Value Growth: Investment gains inside your policy grow tax-deferred. You don’t pay annual taxes on dividends, interest, or capital gains within the sub-accounts.
Policy Loans: Loans against your cash value are generally not taxable events—you’re borrowing your own money. However, if the policy lapses or you surrender it with an outstanding loan, you may owe taxes on the loan amount.
Withdrawals: Withdrawals from cash value are taxed on a “first in, first out” basis for premiums (tax-free return of principal) and then as ordinary income for gains. Withdrawals exceeding your cost basis trigger taxation.
Death Benefit: Beneficiaries typically receive the death benefit free of federal income tax. This represents a significant advantage for wealth transfer.
Estate Taxes: If you own the policy at death, the death benefit is included in your taxable estate. Using an irrevocable life insurance trust (ILIT) can avoid this issue.
Planning for Premium Payments Over Your Lifetime
Fixed premiums provide certainty, but committing to a payment for life requires planning. Consider how your fixed premium fits your financial picture across different life stages.
Working Years (Ages 30-65):
Your income likely supports the fixed premium comfortably. Focus on maximizing sub-account investment growth through appropriate asset allocation. Consider slightly more aggressive investments given your long time horizon.
Pre-Retirement (Ages 55-65):
Review your sub-account allocations. Many financial advisors recommend shifting toward more conservative investments as retirement approaches. Your fixed premium doesn’t change, but how you invest the cash value portion might.
Retirement (Age 65+):
Your fixed premium continues at the same rate, but your income source changes from employment to retirement accounts and Social Security. Ensure your retirement budget accounts for continued premium payments.
Late Retirement (Age 80+):
Evaluate whether maintaining the policy still serves your goals. If your estate needs have diminished and beneficiaries are financially secure, surrendering the policy might make sense. However, doing so forfeits the death benefit and may trigger taxes on gains.
FAQs
Does variable life insurance offer guaranteed returns on cash value?
No. Cash value returns depend entirely on sub-account investment performance. The only guarantee is the minimum death benefit, not investment returns.
Can I change my variable life insurance premium amount?
No. Variable life insurance has fixed premiums set by the insurer. Variable universal life insurance allows premium flexibility.
Do variable life insurance premiums increase with age?
No. Once set, your fixed premium remains level for the policy’s lifetime regardless of your age or health changes.
Can I use my cash value to pay premiums?
Yes. Most policies allow using accumulated cash value for premium payments. This reduces cash value and potentially affects your death benefit.
Is variable life insurance regulated by the SEC?
Yes. Variable life insurance qualifies as a security and requires SEC registration. FINRA also regulates sales practices.
Do beneficiaries pay taxes on variable life insurance death benefits?
No. Death benefit proceeds are generally received income-tax-free by beneficiaries under current federal tax law.
What happens if my investments lose money?
Your cash value and variable death benefit decline, but you continue paying the same fixed premium and keep your guaranteed minimum death benefit.
Can I surrender my variable life insurance policy?
Yes. You receive the cash surrender value minus any applicable surrender charges. This terminates your coverage and may trigger taxes on gains.
Are variable life insurance premiums tax-deductible?
No. Premium payments are made with after-tax dollars and cannot be deducted on your federal income tax return.
What is the free look period for variable life insurance?
Typically 10 days from policy receipt. You can return the policy during this period and receive a full refund of premiums paid.