In a variable life insurance policy, the cash value is held in:

Explanation

Variable life places the cash value in separate account sub-accounts (similar to mutual funds) that the policyowner selects, so the owner bears the investment risk and the cash value rises and falls with market performance. The general account with a guaranteed rate describes traditional whole life. It is not a bank savings account, and it is not a government trust fund. Because the money is invested in securities, variable life requires a securities registration to sell.