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Variable Life Insurance policy funds are invested in separate or accounts that are together? Do they constitute part of the insurer's general investment fund?

User Deanoj
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1 Answer

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Final answer:

Variable Life Insurance policies invest funds in separate accounts that are separate from the insurer's general investment fund and are managed by professional investment managers.

Step-by-step explanation:

Variable Life Insurance policies typically invest funds in separate accounts that are distinct from the insurer's general investment fund. These separate accounts are designated for each policyholder and are often managed by professional investment managers. The funds in these separate accounts are invested in various assets such as stocks and bonds, and the policyholder may have some control over the investment options.