What is a unique feature of variable life insurance?

Variable life insurance is characterized by the policyholder's ability to choose the investments for the cash value component of the policy. This feature is unique because it allows individuals to allocate their cash value among a variety of investment options, such as stocks, bonds, or mutual funds, which can potentially lead to higher returns compared to traditional whole life policies that offer a guaranteed rate of return. By selecting investments, policyholders have the opportunity to increase the cash value based on market performance, aligning their insurance with their personal risk tolerance and financial goals.

In contrast, the guaranteed rate of return pertains more to whole life insurance policies, whereas variable life insurance inherently involves market risk and does not guarantee returns. The notion that premium payments are not required is inaccurate as premium payments are still essential for maintaining the insurance coverage. Lastly, while many life insurance policies may have specific terms relating to expiration at a certain age, variable life insurance does not inherently expire at a specified age unless specified conditions are met. Thus, the ability to select investments for cash value truly sets variable life insurance apart in the realm of life insurance products.