What is a common feature of Variable Life insurance?

Variable Life insurance includes the feature where investment returns can fluctuate based on the performance of selected investment options, such as stocks, bonds, or mutual funds. This characteristic allows policyholders to potentially earn higher returns than traditional life insurance policies that do not allow for investment choices. The value of the cash component of the policy can increase or decrease in accordance with market performance, impacting both the cash value and the death benefit provided to beneficiaries. This dynamic investment aspect is what distinguishes Variable Life insurance from more traditional fixed insurance products, where returns are stable and predetermined.