In variable whole life insurance, what part of the policy is not guaranteed?

In variable whole life insurance policies, the cash value is not guaranteed. Unlike traditional whole life insurance, where the cash value grows at a predetermined and guaranteed rate, variable whole life insurance allows policyholders to invest the cash value in various investment options, such as stocks and bonds. The performance of these investments can lead to fluctuations in cash value, which means it can potentially increase or decrease over time.

This inherent variability in the investment returns impacts the overall cash value of the policy, making it non-guaranteed. This feature allows for the possibility of higher returns compared to more conservative policies, but also introduces a level of risk.

In contrast, the death benefit amount can have a guaranteed minimum that may increase based on the performance of the investments, and premium payments are typically fixed for the life of the policy, ensuring that these factors maintain their consistency regardless of market fluctuations.