What Is Variable Term Life Insurance?

  1. 63333 POINTS
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    Peggy MacePRO
    Most of the U.S.
    There is no such thing as variable term life insurance. Variable life insurance has a cash value component, which Term does not. Variable life insurance can use the stock market to grow (or lose) cash value. Since Term Life Insurance does not have a cash value, the word variable cannot apply to it, at least in the traditional sense.
    Answered on August 27, 2014
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  2. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Variable term life insurance? Never heard of that! You may be thinking of a variable 'premium' or "flexible premium" life insurance..? As Peggy mentioned above, variable products have cash value and term policies do not. The "variable" component in those products is the amount of interest earned, because they are tied to investments in the stock market. A flexible premium life insurance would be a Universal Life policy, which is actually similar to a term policy where the cost of insurance goes up and once that exceeds what is being paid in premiums the sach value is consumed until there is no more insurance. There is such a thing as "indexed" universal Life, which is tied to a stock index and therefore the interest paid into the cash value will vary depending on the performance of the index.
    Answered on September 21, 2015
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