Variable Life insurance is based on what type of premium?

Variable Life insurance is based on level fixed premiums. This means that the policyholder pays a consistent premium amount over the course of the policy, which allows for predictable budgeting and financial planning. The premium payments go towards both the cost of insurance and the investment component of the policy, where the cash value can fluctuate based on the performance of underlying investments, such as stocks or bonds.

This structure differentiates Variable Life insurance from other types of policies where premiums may decrease, be graded, or increase over time. With a level fixed premium, the policyholder is sheltered from fluctuations in premium costs, which can be particularly beneficial for long-term financial security.