A type of contact that is regulated by both the state and federal governments. These contracts are riskier than the typical contract because they depend on the value of a separate account that serves as the backing for the contract.

A form of life insurance whose face value depends on the value of the products used for equity, such as securities, at the time of payout.

In property Insurance, limit which automatically increase at each Policy anniversary unless the insured specifically rejects the increase. In order to increase the amount of coverage in keeping with the average annual inflation rate as measured by one or more applicable price indexes. While not guarantying adequate coverage, a variable limit can prevent underinsurance from growing significantly more severe. See ‘Underinsurance.’

A contract offering the features of both a variable life insurance policy and a universal life insurance policy. Premiums and benefit amounts are adjustable, based on the needs of the policyholder.