Variable Life
A variable life policy allows the owner to invest the policy values in
a selection of separate accounts similar to mutual funds. Separate accounts
could include money market funds and mutual funds invested in stocks and
bonds. A variable life policy presents a higher risk to the owner because
the cash value, and sometimes the death benefit, varies based on the investment
performance of the separate account. The value of a variable policy is directly
related to the investment funds and is not protected by the Idaho Life and
Health Insurance Guaranty Association. This type of policy affords the insured
an opportunity to realize a greater return on their premium dollar, but
the risk is also greater.