A variable life insurance stands for an investment policy. The percentage of the policy that will be invested and the percentage that will cover the life insurance will range upon policy making. Generally, about 4% of the payment goes to build cash value for investment on variable life insurance. This type of life insurance may give the policy owner more control over the payments, but it can also be more risky. How the money will be invested is decided by the policy owner. It can be invested in stocks or bonds, etc.