| Term and cash value (investment) portion split into two distinct accounts; Investment is in insurer's general account |
Within limits, buyer controls premium amount; Depending on premium paid, can raise or lower face amount and amount going into investment account |
Amount depends on owner's choice of premium amounts and on the performance of the investment account |
Flexibility in premium payment, face amount, and amount going into cash value; Low-risk investments in insurer's general account; May give good investment return when interest rates are high |
No forced savings; Policy charges higher than traditional cash value policies; Return may be marginal; If investment account is not funded, policy is an expensive method to buy term insurance protection |
Young buyers; Buyers needing premium and face amount flexibility |