Variable or adjustable life insurance refers to a policy where death benefits & cash values are variable -your death benefits and premiums vary according to your investment's performance. The accumulated cash value is directed to your choice of investment accounts. Investments can include stock funds, bond funds, real estate funds or a combination thereof.

You have more control over how your premiums are invested, but you are also responsible for the performance of the policy. When investing, be sure to get a prospectus from the company and carefully review it. You will have higher death benefits and cash value if the underlying investments do well. Your benefits and cash value will be lower or may be eliminated if the investments you chose don't do as well as you expect.

A great deal of care must be taken with a variable policy. It can be a great asset to your protection as well as a decent investment. I is interesting to note that variable/adjustable life insurance is so much like "normal" investing that agents offering it must be licensed securities dealers and registered with the U.S. Securities and Exchange Commission. Proper guidance from a seasoned professional will help you ensure you get the highest possible performance from a variable life policy.