Oklahoma Life Producer Practice Exam 2025 – All-in-One Resource to Master Your Certification

Variable Whole Life insurance policies are designed to provide both a life insurance benefit and an investment component. One of the most notable features of these policies is the potential for fluctuating cash values. This means that the cash value of the policy can increase or decrease depending on the performance of the investment options chosen by the policyholder, which typically consist of various sub-accounts that can include stocks, bonds, and mutual funds.

The cash values in a Variable Whole Life policy are not guaranteed and can vary from year to year based on market performance, allowing policyholders the opportunity to benefit from investment growth. This feature distinguishes Variable Whole Life policies from traditional whole life insurance, which usually provides guaranteed cash values that grow at a steady rate. Thus, by allowing for fluctuations in cash values, Variable Whole Life policies cater to those who are willing to accept investment risk for the potential for higher returns.