In a variable life insurance policy, the cash value and (in part) the death benefit can rise or fall based on the performance of separate account investments. Because of this investment risk, the producer selling it generally must:

Explanation

Variable life places cash value in separate accounts (sub-accounts) whose performance the policyowner selects and bears the investment risk for; because these are securities, the producer must hold both a life insurance license and a securities registration (FINRA). A life-only license is therefore not enough. The insurer does not guarantee the separate account's return, so no 4% minimum is promised. The premiums go into separate accounts rather than the insurer's general account — general-account investment describes traditional whole life.