Variable and Variable Universal Life Insurance
Life insurance company-managed products are a large part of the professionally managed assets (PMA) universe of options. This chapter and the next examine variable life products (including variable universal life) and variable annuities, respectively. Both variable life products and variable annuities are products in which the cash value (in the case of variable life options) or accumulation units (in the case of variable annuities) are invested in mutual fund–type investments. A life insurance policy is purchased to protect survivors from the risk of premature death of the insured, whereas an annuity is purchased to protect the annuitant from the risk of superannuation (the risk of outliving his or her income during his or her lifetime).