What is a requirement for a single premium variable life insurance policy?

For a single premium variable life insurance policy, a key requirement is that it must be issued with a minimum death benefit. This minimum death benefit ensures that there is a guaranteed level of payout to the policy's beneficiaries upon the death of the insured, regardless of the performance of the underlying investment accounts within the policy.

In essence, variable life insurance products combine life insurance with investment opportunities, allowing the policyholder to allocate their premiums among various investment options. However, the inclusion of a minimum death benefit is crucial as it provides a safety net that guarantees a certain level of financial protection, even if the policy's investments perform poorly.

This requirement distinguishes single premium variable life insurance from other types of insurance products and aligns with regulatory standards aimed at consumer protection. Thus, the presence of a minimum death benefit serves both as a foundational feature of the policy and as a critical element in the overall planning for financial security.