Variable Life Insurance

What this video covers

• Why variable life insurance (VLI) has a fixed premium and variable universal life (VUL) has flexible premiums, and how the word "universal" signals premium flexibility on exam questions
• The guaranteed minimum death benefit at face value for VLI, and why the cash value has absolutely no guaranteed minimum and can drop to zero
• Why both VLI and VUL are securities requiring prospectus delivery, since the policyholder bears the investment risk in the separate account
• How to distinguish whole life and universal life (non-variable) from variable products: general account means insurer bears the risk, no prospectus required
• The three requirements for dual licensing to sell variable products: securities license (Series 6 or 7), state insurance license, and broker-dealer association
• Why the primary purpose of variable life insurance is death benefit protection while variable annuities are for tax-deferred retirement savings, and how accumulation units and assumed interest rate (AIR) appear only with annuities
• The variable annuity death benefit guarantee: greater of account value or total premiums paid, versus the face value floor of VLI