Which type of variable life insurance guarantees minimum death payment and allows borrowing against cash value?

The type of variable life insurance that guarantees a minimum death benefit and allows the policyholder to borrow against the cash value is actually variable universal life insurance. This type combines the flexibility of premium payments with an investment component that can increase the cash value and potential death benefit.

Variable universal life insurance policies provide a minimum guaranteed death benefit, which means that even if the investments within the policy underperform, the policyholder is assured a certain level of death benefit will be paid to beneficiaries. Additionally, the cash value that accrues within this policy can be accessed through loans, allowing policyholders to borrow against it if needed. This feature gives policyholders access to funds while keeping their insurance coverage intact.

In contrast, flexible premium variable life and scheduled premium variable life do not necessarily guarantee a minimum death benefit to the extent seen in variable universal life. Flexible premium variable life allows for varying premium payments, but the death benefit may depend more heavily on the policy's performance. Scheduled premium variable life requires fixed premium payments and can also have variable death benefits based on policy performance. Interest-sensitive whole life insurance is a different type of policy entirely, focusing more on the whole life aspect with guaranteed death benefits and cash value growth, but does not have the variable investment component of the