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Variable life is another specialized form of whole life insurance. Like universal life options, variable policies also establish a savings account intended to grow cash value through investment in stocks,bondsand money market mutual funds. While they employ the same basic strategy as universal life, variable life coverage tends to involve considerably more risk.
This is because market fluctuation can negatively affect cash and death benefit values. Though some variable life options cap potential losses by setting a minimum policy value as a trigger for divesting.
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