What is variable life insurance? What are the advantages and disadvantages of variable life policies? How can individuals avoid the high fees of variable life insurance?

Variable life insurance can be described as a type of insurance which is permanent and builds up a cash value. The cash value account is invested into different sub-accounts which depends on the policy.

The advantage of the variable account is that it has the potential to grow as the investments in the sub - accounts grow. But its disadvantage is that if the underlying investments drops, then the cash value also drops.

The high fees can be avoided by using a budget plan and choosing a policy according to it. A person can avoid the high fees by purchasing lower-cost term insurance and investing the cost difference.