| Combines features of Universal Life and Variable Life |
Like Universal Life, buyer controls amount of premium; Like Variable
Life, buyer directs premium payments into several sub-accounts |
Amount depends on premium funding and on investment performance of
sub-accounts chosen |
Flexibility in premium amount, face amount, and amount going into cash
value; Potential for investment return beyond that possible with
"general account" policies |
No forced savings; If investment component of policy is not funded,
policy is a very expensive way of buying term protection; Poor
investment performance can drain or eliminate cash values and death
benefits |
Young, risk-tolerant buyers having long-term insurance and investment
needs; Alternative to buying term and investing savings in a side fund |