What is not true about Variable Life Insurance regarding cash value?

Variable Life Insurance is characterized by its investment component, which means that the cash value and the death benefit can fluctuate based on the performance of the underlying investments chosen by the policyholder. Therefore, it is important to understand that the cash value in a variable life insurance policy is not guaranteed. Instead, it can increase or decrease depending on market conditions and the performance of the investment options selected.

The fact that the cash value can fluctuate with investment performance aligns perfectly with the nature of variable life policies, where policyholders have the ability to choose different funds that may yield varying returns. Higher premiums can indeed contribute to a larger cash value, and policyholders can borrow against the cash value. However, these attributes do not negate the core characteristic that the cash value does not come with guaranteed growth. Understanding these aspects helps policyholders manage expectations about their variable life insurance coverage.