In variable life insurance, if actual investment returns exceed the assumed rate of returns, cash values increase more than assumed, and these increases are used partly to purchase additional death benefits.The additional death benefits are usually in the form of:

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The additional death benefits in variable life insurance, when actual investment returns exceed the assumed rate, are typically provided in the form of term life insurance. This allows for a cost-effective way to increase the death benefit coverage temporarily, aligning with the increased cash values.

In Variable Life Insurance, If Actual Investment Returns Exceed the Assumed