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Variable life insurance is a life insurance policy that provides for a minimum guaranteed death benefit, as well as an additional death benefit based on the investment results of the separate account.
When an individual pays the premium on a variable life insurance policy the money is invested in the separate account. Certain deductions are made from both the premium as well as from the money in the separate account. The deductions are used to pay the various costs of the insurance. If the investments in the separate account perform well the individual will have a life insurance policy with a death benefit that is higher than the minimum death benefit.