Variable Life Insurance
Chapters in this video
- 0:00 Variable life insurance: fixed premium and separate account
- 0:55 The parachute and backpack guarantee analogy
- 2:49 Variable universal life: flexible premiums and the universal signal
- 4:08 Variable equals security: prospectus and dual licensing domino effect
- 5:24 The great insurance showdown: general account versus separate account
- 6:20 Variable life versus variable annuity: purpose and unit traps
- 7:30 Rapid-fire exam recap
What this video covers
- Why variable life insurance (VLI) has a fixed premium while variable universal life (VUL) has flexible premiums, and how the word "universal" is your signal for flexibility
- The guaranteed minimum death benefit floor (face value) in VLI versus the complete absence of any guaranteed minimum cash value
- The separate account mechanics that make both VLI and VUL securities requiring prospectus delivery
- The dual licensing requirement: a securities license (Series 6 or Series 7) plus a state insurance license to sell any variable product
- Why whole life and standard universal life are insurance-only products (general account, no prospectus, no securities license required)
- How to distinguish variable life insurance from variable annuities on primary purpose, death benefit guarantees, and the absence of accumulation or annuity units
- The exam trap of fixed premium variable policy versus flexible premium variable policy, and which product each description matches
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