Most of the other terms of variable life policies are the same as a universal life policy:
- You can borrow against your cash value. In many policies, the amount you borrow is limited by the amount that’s invested in a money market fund, which often gets a lower rate of return than the stock or bond funds. This sort of defeats the purpose of buying this kind of policy to take advantage of the more dramatic rises in the stock market.
- You can choose to have an increasing or fixed death benefit.
- Your cash-value earnings are all tax-deferred, which adds value for many people.
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