Why it matters
Because the owner bears investment risk, variable life is a securities product as well as insurance. It is sold with a prospectus, and agents need a securities license to sell it. The cash value can lose money, and fees can be significant. Buyers should read the prospectus and compare fees. Variable life suits people who want market exposure inside a life policy and accept the risk. It is a poor fit for families who need guaranteed coverage at a low cost.
Source: investor.gov