Variable life insurance is another form of permanent life insurance that has an investment account(s) attachment.  These investment accounts are usually flexible in their menu often allowing stocks, mutual funds and bonds.  These investments and their performance have a bearing on premiums owed and the death benefit.  A great perk with a variable life insurance policy is tax deferment (restrictions may apply) on investment gains until the policy is cashed in.  One big draw back is variable life policies are costly fee wise. Below are tips, things to consider, and questions to ask:

• If a policy needs to be surrendered when can it be done and what are the fees for doing so?
• Find out if the policy being considered (or if you have 1 currently what the rules are) allows borrowing off the policy and what the specifics are.
• Is the investment component of the account appropriate for your risk tolerance and long term goals?
• Is variable life insurance coverage appropriate in the time frame the money will be needed?
• When working with a financial advisor or insurance agent ask them about their experience with variable insurance policies.  Also ask them about who they generally recommend variable life coverage to.
• Choose a policy with a variable insurance company that has a clean record (call your state insurance commission and the Securities and Exchange Commission) and is financially strong (check with Moodys, S&P, AM Best).