How are the policy benefits of Variable Life policies primarily determined?

The benefits of Variable Life policies are primarily determined by the investment performance of underlying assets because the death benefit and cash value of these policies are directly linked to the investments chosen by the policyholder, which can include a variety of assets like stocks, bonds, and mutual funds. As the value of these investments increases or decreases, so too does the overall value of the policy. This feature allows policyholders to potentially grow their cash value at a rate that may exceed traditional life insurance products, but it also introduces the risk associated with market fluctuations. This connection to investment performance is what distinguishes Variable Life policies from other life insurance products where benefits might be more static or guaranteed.