Final answer:
A Variable Life policy offers investment in products like money-market funds, long-term bonds, and equities, along with life insurance coverage. It allows for potential growth in the policy's cash value, which is crucial for retirement planning and ensuring stable income in old age.
Step-by-step explanation:
A Variable Life policy is a type of life insurance product that offers investment options like money-market funds, long-term bonds, and equities.
Unlike some other forms of life insurance, a Variable Life policy not only provides a death benefit to the beneficiary upon the policyholder's death but also has a cash value component that can be invested in a variety of financial instruments, allowing the potential for growth in the policy's cash value.
This can be an important part of one's financial planning, especially when considering saving for old age and ensuring a stable income post-retirement. Individuals saving for retirement often look into a myriad of private market options, including stocks that pay dividends, interest-generating bonds, and fixed-income investments like annuities.