To remain competitive and to overcome the criticisms of traditional cash-value policies, insurers have developed a wide variety of whole life products that combine insurance protection with an investment component. Important variations of whole life insurance include the following:10
Variable life insurance
Universal life insurance
Indexed universal life insurance
Variable universal life insurance
Current assumption whole life insurance
Variable life insurance can be defined as a fixed-premium policy in which the death benefit and cash values vary according to the investment experience of a separate account, which is similar to a mutual fund maintained by the insurer. The death benefit ...