A permanent policy with a separate account holding assets like stock and bond funds.
Tied to market performance, it’s treated as a security and regulated under federal securities laws.
Buyers get a prospectus; policyholders can pick investment strategies matching their risk tolerance.
Tax perks include tax-deferred earnings; cash value loans may be tax-free, but unpaid loans cut death benefits.
Often pricier, with fees and no performance guarantees; policyholders bear investment risk and may need higher premiums.